Trading Statement

Burberry Group plc                               

                           First Half Trading Update                           

October 14, 2002. Burberry Group plc reports on trading for its first half
ended 30 September 2002.

Highlights

  * Total revenues increased by 15%
   
  * Retail sales up 17% on an underlying* basis, driven by existing and new
    store performance
   
  * Wholesale sales increased 8% (4% on an underlying basis reflecting earlier
    shipments of autumn product)
   
  * Orders received to date indicate single digit growth for the Spring/Summer
    2002/03 wholesale order book
   
  * Licensing revenue up 14% driven by strong volume growth in Japan
   
*Underlying figures are calculated at constant exchange rates and exclude the
impact of the Asia acquisitions. Burberry acquired the operations of its
primary distributors in Asia outside of Japan in January 2002 and July 2002
(the 'Asia acquisitions').

Commenting on the trading results, Rose Marie Bravo, Chief Executive, stated,
'Burberry's performance in the first half was on track, driven by growth in key
product categories, targeted geographies and distribution channels. These
results were particularly notable given the trading conditions. Moving into the
second half, we remain confident in our strategies while mindful of the
difficult and uncertain environment.'

Total revenues

Total revenues in the period increased by 15% (17% at constant exchange rates),
or 9% on an underlying* basis (i.e. at constant exchange rates and excluding
the impact of the Asia acquisitions) compared to the six months ended September
2001.

Retail

On an underlying basis, retail sales in the first half increased by 17%, driven
by sales gains at existing stores and by recent contributions from newly opened
stores. Total retail sales increased 32%, boosted by the contribution from
stores and concessions added as part of the Asia acquisitions. During the
period, Burberry experienced continued strength in the US market. The Company
opened five stores, including a flagship store in Barcelona, three Burberry
stores, in Heathrow Airport, Hong Kong and Coral Gables (Florida), as well as
one outlet store in the period.

During the second half of 2002/03, the Company plans to open eight new and
replacement stores, including flagship stores in New York and London
(Knightsbridge), three Burberry stores and three outlet stores. Burberry
recently announced plans for a store in Milan, its first store in Italy, which
is scheduled to open in late 2003.

Wholesale

Total wholesale sales increased by 8% during the period. Consistent with
previous announcements, Burberry's 2002/03 Autumn/Winter wholesale order book
was largely unchanged from the prior year. On an underlying basis, wholesale
sales increased by 4% reflecting earlier deliveries of autumn product relative
to last year.

On the basis of orders received to date, Burberry anticipates that its
aggregate Spring/Summer 2002/03 wholesale order book will show single digit
growth over the prior year. The majority of Spring/Summer merchandise shipments
are concentrated in the fourth quarter of each financial year.

Licensing

Total licensing revenues in the first half increased by 14% (21% at constant
exchange rates), driven by strong growth in Japanese royalties, reflecting
double-digit volume gains and increases in certain royalty rates. Burberry
anticipates a reduced rate of volume growth in Japan over the balance of the
financial year. Licensing revenues will also continue to be affected by
depreciation of the Yen/Sterling exchange rate and the termination and
absorption into wholesale operations of certain product licenses, in line with
our strategy.

Burberry will announce its interim results on November 19, 2002 and provide a
trading update on third quarter sales on January 13, 2003.

Enquiries:

Burberry

Mike Metcalf              COO and CFO                020 7968 0465             
                                                                               
Matt McEvoy               Strategy and IR            020 7968 0465             

Brunswick

Susan Gilchrist                                      020 7404 5959             
                                                                               
Charlotte Elston                                     020 7404 5959             

*Underlying figures are calculated at constant exchange rates and exclude the
impact of the Asia acquisitions. Burberry acquired the operations of its
primary distributors in Asia outside of Japan in January 2002 and July 2002
(the 'Asia acquisitions').

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.