Trading update

Burberry Group PLC
13 January 2004

                              Burberry Group plc

                    Third Quarter 2003/04 Trading Update

13 January 2004.  Burberry Group plc reports on trading for the third quarter
ended December 2003.

Highlights

•  Total revenues increased by 15% on an underlying* basis, 12% reported
•  Retail sales up 11% underlying (7% reported), driven by new stores
•  High single digit wholesale sales growth now anticipated for spring/summer 
   2004 season; wholesale sales increased 23% underlying (23% reported)
•  Licensing revenue up 18% underlying, 10% reported

*Underlying figures are calculated at constant exchange rates.

Commenting on the trading results, Rose Marie Bravo, Chief Executive, stated, '
We are pleased with Burberry's performance in the quarter.  Against exceptional
prior year results, we achieved 15% underlying revenue growth. With a strong
initial consumer response to our spring/summer product at retail and a healthy
wholesale order book for the season, Burberry enters the remaining quarter of
the year with continued momentum.'

Total revenues

Total revenues in the quarter ended December 2003 increased by 12%, 15% on an
underlying* basis (i.e. at constant exchange rates), compared to the same period
last year.

Retail

Retail sales increased by 11% underlying, 7% reported, and accounted for
approximately 60% of total revenue in the quarter.  This growth was driven by
new stores with a marginal contribution from existing stores, which was achieved
in the context of an exceptionally strong prior year performance.

Regional market performance was generally consistent with early autumn trends.
The US market continued its impressive strength.  In Asia, Hong Kong has fully
recovered from the shocks earlier in the year and the Korean business has
demonstrated resilience in a volatile environment.  In Europe, UK performance
reflected a sluggish market, while the continental European market continued to
gain momentum.

The Group opened four Burberry stores in the period, including its first stores
in Australia (Melbourne) and Malaysia (Kuala Lumpur), and an additional store in
each of the Hong Kong and Singapore markets.  One outlet store was also opened
during the period.  In total, the Group remains on schedule to expand selling
space by approximately 12% by the end of the current financial year.

Wholesale

Wholesale sales increased by 23% underlying, 23% reported, during the quarter.
This gain reflects continuing growth of the business magnified by the trend
toward earlier deliveries for spring/summer product and excellent shipping
performance.  On the basis of orders received to date, Burberry now anticipates
high single-digit wholesale sales growth for the Spring/Summer 2004 season.  The
majority of spring/summer merchandise is shipped in the fourth quarter of each
financial year.

Licensing

Total licensing revenues in the quarter increased by 18% on an underlying basis,
and 10% reported.  Licensing revenues from the Japanese market reflected
increases in certain royalty rates and a reduction in management fees with
respect to specific licences.  The broadly static volumes in Japan are in the
context of exceptional gains achieved in the comparable periods of the two
preceding years.  Licensing revenues also benefited from strong sales gains by
global product licensees, particularly fragrances where Burberry Brit continued
to benefit from its outstanding launch.

Burberry will provide a second half trading update on 14 April 2004.

Enquiries:

Burberry                                                           020 7968 0577
Mike Metcalf                       COO and CFO
Matt McEvoy                        Strategy and IR

Brunswick                                                          020 7404 5959
Susan Gilchrist
Sophie Fitton

*Underlying figures are calculated at constant exchange rates.

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.




                      This information is provided by RNS
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