Trading Statement

Burberry Group plc                               

                         Third Quarter Trading Update                          

January 13, 2003. Burberry Group plc reports on trading for its third quarter
ended December 2002.

Highlights

  * Strong performance across the business
   
  * Total revenues increas ed by 33%, 18% underlying*
   
  * Retail sales up 32% on an underlying basis, driven by existing and new
    store performance
   
  * High single digit wholesale sales growth anticipated for the Spring/Summer
    2003 season
   
  * Licensing revenue up 9%
   
*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,
'The Company's strong performance in the third quarter reflects the strength of
the Burberry brand and continued execution of our key growth initiatives by
product, channel and region. Particularly notable is the performance of our
directly operated stores in a challenging trading environment. These results
confirm that the business remains on track to deliver on the objectives we set
at the time of the IPO.'

Total revenues

Total revenues in the period increased by 33% (36% at constant exchange rates),
or 18% on an underlying* basis (i.e. at constant exchange rates and excluding
the impact of the Asia acquisitions) compared to the same period last year.

Retail

On an underlying basis, retail sales increased by 32%, driven by gains at
existing stores and strong contributions from newly opened stores. Total retail
sales increased 64%, boosted by the contribution from stores and concessions
added as part of the Asia acquisitions. Retail operations accounted for
approximately 63% of total revenue in the quarter. During the period, Burberry
achieved outstanding growth in the US and UK markets. Exceptional product
categories included gift-related items and cold weather classifications. The
Company opened seven stores during the period, including flagship stores in New
York and London (Knightsbridge), both of which enjoyed an enthusiastic consumer
response. The Company also opened Burberry stores in San Jose, California and
Orlando, Florida, as well as three outlet stores in the period.

Wholesale

Total wholesale sales were broadly unchanged on an actual and underlying basis
during the period, partially reflecting the acceleration of deliveries into the
first half compared to the prior year, as described in the interim statement.
On the basis of the current order book, Burberry anticipates high single-digit
wholesale sales growth for the Spring/Summer 2003 season. The majority of
Spring/Summer merchandise shipments are concentrated in the fourth quarter of
each financial year.

Licensing

Total licensing revenues in the quarter increased by 9% (7% on an underlying
basis). As anticipated, royalties from the Japanese market reflected
single-digit volume gains as well as increases in certain royalty rates. This
volume gain is encouraging in light of the exceptional growth achieved in the
comparable period last year and the lacklustre economic environment.

Burberry will provide a second half trading update on 15 April and release its
preliminary results for the financial year to 31 March on 22 May.

Enquiries:

Burberry

Mike Metcalf              COO and CFO                020 7968 0411             
                                                                               
Matt McEvoy               Strategy and IR            020 7968 0411             

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.

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.