Trading Statement

Burberry Group PLC
12 July 2006


                               Burberry Group plc
                                        
                          First Quarter Trading Update

12 July 2006. Burberry Group plc reports on trading for the first quarter ended
30 June 2006.


Highlights
   • Total revenue increased 12% on an underlying* basis
   • Retail sales rose 19% underlying driven by new and existing stores
   • Wholesale revenues increased 2% underlying
        -  Burberry continues to anticipate a low single digit percentage 
           underlying increase in wholesale sales for the first half
   • Licensing revenue increased 11% underlying


Revenue by geographical origin (statutory accounts format)

                 First Quarter to 30 June  
£ million           2006          2005       % change

Europe                44            39             14
Spain                 15            12             27
North America         36            32             12
Asia                  41            31             30
Total                135           114             19



Revenue by channel of distribution

                  First Quarter to 30 June           % change                     
£ million            2006          2005        Reported     Underlying*

Retail                 82            61              35              19
Wholesale              38            39             (3)               2
Licence                16            14              11              11
Total                 135           114              19              12


* Underlying figures exclude the financial effect of the Taiwan Acquisition and
the portion of Burberry's business in Spain affected by the retail conversion,
in both reporting periods. In addition, underlying figures are calculated at the
same exchange rates used in the 2005/06 year's reported results for the period.
Burberry completed the acquisition of the operations and assets of its
distributors in Taiwan in August 2005 (the 'Taiwan Acquisition') and initiated
actions related to the retail conversion in Spain during the third quarter of
2005/06.

Commenting on the trading results, Angela Ahrendts, Chief Executive Officer,
stated, 'The strong first quarter results reflect the continued momentum of
Burberry's retail operations across our primary product categories and
geographical regions. As a whole, performance in this period is consistent with
expectations for the full financial year.'

Total revenue

Total revenue in the first quarter increased 12% on an underlying basis (i.e.
adjusted for (i) the Taiwan acquisition, (ii) the portion of Burberry's business
in Spain affected by the retail conversion and (iii) exchange rate differences).
The Taiwan acquisition and Spain retail conversion shift sales from Burberry's
wholesale channel to its retail channel. In determining underlying performance,
the financial effects of the relevant businesses are excluded from both
reporting periods. Total reported revenue increased 19% in the first quarter.

Retail

Retail sales accounted for approximately 61% of total reported revenue in the
quarter.

Retail sales in the period increased 19% underlying, 35% reported, driven by
contributions from newly opened stores and strong gains at existing stores. All
three major product categories performed well in the period. The Taiwan
acquisition and Spain retail conversion contributed approximately 14 percentage
points of the reported gain. During the quarter, Burberry opened a store in
Atlantic City (New Jersey), a replacement store in Taipei and one outlet store.
The Group also opened two accessory concessions in Spain. On a year on year
basis, underlying average net retail selling space increased approximately 10%
in the quarter. Burberry remains on schedule to increase underlying net retail
selling space by a minimum of 10% for the financial year.

Retail performance was generally strong across the regions. In the US, new and
refurbished stores, supplemented by gains at existing locations, drove sales
growth. With ongoing momentum at existing stores, the majority of Continental
European markets achieved strong gains. In the UK, existing stores produced a
double digit increase in the period. Asia demonstrated continued underlying
strength primarily on the performance of existing stores.

Wholesale

Wholesale sales accounted for approximately 28% of total reported revenue in the
quarter.

In the period, total wholesale sales increased 2% on an underlying basis, and
declined 3% reported. The majority of autumn/winter product shipments are
concentrated in the second quarter of each financial year. Burberry continues to
anticipate a low single digit percentage underlying increase in first half
wholesale sales relative to the previous year. On a reported basis, the Spain
retail conversion will result in a shift of sales from Burberry's wholesale
channel to its retail channel in the first half.

In conjunction with a local partner, the Group opened a net one franchise store
in China during the quarter.

Licensing

Total licence revenue in the quarter increased 11% on both an underlying and
reported basis. In Japan, licence revenue achieved a solid underlying gain
reflecting modest volume growth and increases in certain royalty rates. Burberry
continues to expect a moderate underlying revenue decline in Japan for the full
financial year as a result of licence transitions and other ongoing efforts to
enhance brand positioning in this market. Strong growth in product licence
revenue was led by fragrances, which benefited from the successful launch of
Burberry London for women during spring 2006. Burberry London for men is
scheduled to launch in autumn 2006.

Burberry will provide a first half trading update on 11 October and release
interim results for the six months to 30 September 2006 on 14 November.

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 shares. Past
performance is not a guide to future performance and persons needing advice
should consult an independent financial adviser.



                      This information is provided by RNS
            The company news service from the London Stock Exchange