Trading Statement

Burberry Group PLC
13 April 2005



                                 Burberry Group plc

                             Second Half Trading Update



Burberry Group plc reports on trading for the six months ended 31 March 2005.

Highlights

   • Total revenue increased by 6% on an underlying(1) basis
   • Retail sales rose by 6% underlying driven by new stores
   • Wholesale sales increased by 5% underlying driven by Spring/Summer 2005
     season sales
   • Licensing revenue increased by 8% underlying
   • Minimum EBITA of £162 million for 2004/05
   • 2005/06 plans
     -  increase average net retail selling space by approximately 8%
     -  first half wholesale revenues broadly flat relative to the previous
        year based on orders to date for the Autumn/Winter 2005 season
     -  more moderate growth in licensing revenue relative to the second half
        of 2004/05

                               Second Half                           Full  Year
------------------------------------------------------------------------------------------------------------------------
                 2004/05         2003/04       % change               2004/05         2003/04      % change
------------------------------------------------------------------------------------------------------------------------
£ million  Reported Underlying  Reported  Reported  Underlying  Reported  Underlying  Reported  Reported  Underlying    
              (2)       (1)        (2)                             (2)        (1)        (2)      
------------------------------------------------------------------------------------------------------------------------
Retail        155        163       153        1          6        265         279        257        3          8
Wholesale     174        179       171        2          5        372         382        351        6          9
Licence        39         39        36        8          8         78          80         67       17         19
------------------------------------------------------------------------------------------------------------------------
Total         368        380       360        2          6        716         740        676        6         10

(1) Underlying figures are calculated at constant exchange rates
(2) Calculated at average annual exchange rates

Commenting on the trading results, Rose Marie Bravo, Chief Executive, stated,
'Burberry continued to manage for the bottom line, delivering a solid result for
the half. This will allow the Group to achieve EBITA ahead of expectations for
the 2004/05 financial year. Looking forward, we continue to be encouraged by the
vitality of the Burberry brand and the opportunities it presents.'




Total revenue

Total revenue in the six months to March 2005 increased by 6% on an underlying
(1) basis (i.e. at constant exchange rates), 2% reported, compared to the same
period last year.


Retail

Underlying retail sales in the second half increased 6% (1% reported), driven by
contributions from newly opened and refurbished stores. In addition to the four
stores and concessions opened in the third quarter, the Group opened a net four
concessions during the fourth quarter. On a year on year basis, average net
retail selling space increased approximately 8% in the half.

In aggregate, fourth quarter retail performance was consistent with that of the
third quarter. In the US, as the result of a muted consumer response to early
spring women's fashion styles and significant store renovation activity, sales
growth was driven by space additions. Similarly, new stores and concessions
drove sales growth in Continental European markets, which had achieved strong
gains in the previous year period. The UK market continued to be soft. In Asia,
sales in Korea continued to be volatile as a result of the challenging retail
environment resulting in a small gain for the quarter. Hong Kong and Southeast
Asia achieved robust gains in the period.


Wholesale

Total wholesale sales increased by 5% on an underlying basis, 2% reported,
during the second half driven by solid sales growth for the Spring/Summer 2005
season. By region, growth was led by strong gains across Asian markets.
Continental European markets achieved good growth. Following strong gains in the
previous year, US wholesale sales increased marginally in the half. Strong gains
in new and emerging markets also contributed to the increase. In conjunction
with local partners, the Group opened seven franchised stores in the half,
including a new store in Beijing.


Licensing

Total licensing revenue in the second half increased 8% on an underlying basis,
8% reported. In Japan, aggregate volumes declined as a result of licensee
cancellations/transitions, Burberry's programme to reduce selectively the
distribution of certain products in that market and a soft apparel environment.
This decline was partially offset by increases in certain royalty rates. Global
product licences drove gains in the half led by the continued strong performance
of fragrance products. At the Annual Fragrance Foundation awards held last week
in New York City, Burberry Fragrances won three awards, including best men's
fragrance for Burberry Brit for Men.

2005/06 plans

In line with the ongoing execution of its core growth strategies, Burberry's
plans for the 2005/06 financial year include:

• An approximate 8% increase in average net retail selling space through
  the addition of stores and concessions. In the US, the Group has signed leases
  for new stores in Naples, Florida; San Antonio, Texas; San Diego, California and
  Atlantic City, New Jersey. Burberry has also signed a lease for a new store in
  Madrid, Spain, which is expected to open in spring 2006.
• First half wholesale sales broadly flat relative to the previous year
  based upon orders received to date for the Autumn/Winter 2005 season.
• More moderate licensing revenue growth relative to the second half of
  2004/05
  -   revenues from Japan are expected to decline moderately for the year as a
      result of Burberry's programme to reduce selectively the distribution of 
      certain products in this market, a soft apparel environment and licensee 
      cancellations/ transitions
  -   global licensees are expected to continue to produce strong gains


Burberry will announce its preliminary results for the year ended 31 March 2005
on 24 May 2005.

Enquiries:

Burberry                                                020 7968 0577

Stacey Cartwright           CFO
Matt McEvoy                 Strategy and IR
John Scaramuzza             Strategy and IR



Brunswick                                               020 7404 5959

Susan Gilchrist
Laura Cummings
Robert Gardener


The financial information contained in this Trading Update has not been audited.

Certain statements made in this Trading Update are forward looking statements.
Such statements are based on current expectations and are subject to a number of
risks and uncertainties that could cause actual results to differ materially
from any expected future results in forward looking statements.

This announcement does not constitute an invitation to underwrite, subscribe for
or otherwise acquire or dispose of any Burberry Group plc or GUS plc shares.
Past performance is not a guide to future performance and persons needing advice
should consult an independent financial adviser.



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