3rd Quarter Trading Update

Burberry Group PLC
15 January 2008

15 January 2008

                                Burberry Group plc

                            Third Quarter Trading Update
                          and Interim Management Statement


Burberry Group plc, the global luxury company, today reports on trading for the
three months to 31 December 2007.

Third quarter highlights (on an underlying basis*)

• Total revenue increased by 26%

• Retail revenue up 14%, with comparable store sales growth of 6%

• Wholesale revenue increased by 74%
    o  Now expect over 20% growth for the second half (up from mid-teens growth
       previously)


As anticipated, the all-important third quarter was an intense period of
activity for Burberry, with our new IT systems in warehousing and European
retail operational for the first time. Volume growth overall was high, driven by
the strength of our products, and we continued to increase infrastructure costs
to support this strong growth. However, retail sales did come in modestly behind
our plan, with proportionally more inventory sold during our usual sale period.


Commenting on this performance, Angela Ahrendts, Chief Executive Officer, said:

'In the third quarter, Burberry delivered 26% sales growth, with solid
double-digit growth in all channels and regions, notwithstanding economic and
internal infrastructure challenges. This performance reflects the continued
appeal of our new product and marketing strategies globally, and particularly in
our high growth, under-penetrated regions including the United States, China and
Emerging Markets.'

There will be conference calls to discuss this update today at 9am and 3pm (UK
time). The conference calls can be accessed live on the Burberry website (
www.burberryplc.com), with replays of both calls available later today.

Burberry will release its Second Half Trading Update for the six months to 31
March 2008 on 15 April 2008. It will announce its preliminary results for the
year to 31 March 2008 on 28 May 2008.


* Underlying change is calculated at constant exchange rates.
Certain financial data within this announcement has been rounded.


Revenue by origin of business

                             Three months to 31 December             % change
£ million                           2007          2006               reported
------------------             ---------     ---------              ---------
Europe (excluding Spain)              83            59                     41
Spain                                 26            23                     16
North America                         85            71                     19
Asia Pacific                          60            53                     11
                               ---------     ---------              ---------
Total                                254           206                     23
------------------             ---------     ---------              ---------


Retail and wholesale revenue by destination

                          Three months to 31 December           % change
£ million                        2007          2006        reported underlying
------------------          ---------     ---------       ---------  ---------
Europe (excluding Spain)           67            47              43         41
Spain                              26            22              16         10
North America                      85            72              19         26
Asia Pacific                       49            42              15         20
Other                               8             4              90         90
                            ---------     ---------       ---------  ---------
Total                             235           187              26         28
------------------          ---------     ---------       ---------  ---------
Comments in this announcement refer to revenue by destination which better
reflects the regional demand for Burberry products.



Revenue by channel of distribution

                        Three months to 31 December             % change
£ million                        2007          2006         reported underlying
------------------          ---------     ---------        ---------  ---------
Retail                            161           144               12         14
Wholesale                          74            43               71         74
Licensing                          19            19               (1)         7
                            ---------     ---------        ---------  ---------
Total                             254           206               23         26
------------------          ---------     ---------        ---------  ---------


Total revenue
Total revenue in the third quarter increased by 26% on an underlying basis (23%
reported). There was solid double-digit growth in both retail and wholesale;
with double-digit comparable store sales growth in major markets including the
United States, Hong Kong and Emerging Markets. Luxury handbags, outerwear, shoes
and other accessories, including scarves, were particularly strong.

Retail
Retail sales, which accounted for over 60% of total revenue in the period,
increased by 14% on an underlying basis (12% reported), modestly behind our
plan.

Comparable store sales grew by 6% in the three months to 31 December 2007, with
proportionally more inventory sold during our usual sale period. In the United
States, comparable store sales continued to show double-digit growth for the
three month period, with better performances in major cities. Europe (excluding
Spain) showed positive comparable store sales growth, with Italy again the best
performing market. However, Spain declined year-on-year in the third quarter,
reflecting a more difficult retail environment throughout the period. Hong Kong
remained the strongest market within Asia.

During the third quarter, we opened six mainline stores, including Florence, an
additional store in Hong Kong and our fifth icon trial in the Beverly Center,
Los Angeles. There was an 11% increase in average selling space year-on-year in
the third quarter, with 12% expected for the second half as a whole.

Wholesale
In what is a small quarter for wholesale, revenue increased by 74% on an
underlying basis (71% reported). This was driven by more replenishment and by
new and earlier deliveries, including October gift and Spring accessories
collections.

For the second half of the year, Burberry now expects wholesale revenue to
increase by over 20% on an underlying basis (up from mid-teens growth
previously). This reflects the successful execution of our new product
strategies, leading to outperformance (and thus high sell-through rates) of our
merchandise in our wholesale customers' stores. We also have growing confidence
in our ability to deliver on a more timely basis following the implementation in
September 2007 of our new IT system (SAP) for shipping.

In the second half, wholesale revenue in Spain is expected to show further
weakness, while the rest of Europe and North America will deliver increases of
over 40%. This strong growth will continue to incur some additional warehousing
and distribution costs.

Emerging Markets again outperformed. During the third quarter, we opened two
stores in conjunction with local franchisees, including one in St Petersburg,
Russia. About six store openings are planned for the fourth quarter and about 15
in the next financial year.

Licensing
Total licensing revenue in the third quarter increased by 7% on an underlying
basis (down 1% reported), with growth from both apparel and non-apparel licences
in Japan. This performance, which benefited from phasing differences relative to
last year, is consistent with our expectation for the full financial year of
broadly flat licensing revenue on an underlying basis. We continue to expect the
weakness of the yen to reduce reported revenue and profit by about £6m in the
full year.

A new fragrance, Burberry The Beat, will be launched during the fourth quarter
by our partner, Inter Parfums, which will fund a supporting global advertising
campaign.

Financial condition
Except for the trading activities described above, there has been no significant
change to the financial condition of the company.

Enquiries

Burberry                                                  020 7968 5919
Stacey Cartwright    Chief Financial Officer
Fay Dodds            Director of Investor Relations

Brunswick                                                 020 7404 5959
David Yelland
Robert Gardener
Clare Barclay

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.

Notes to Editors

   • Burberry is a global luxury brand with a distinctive British heritage.

   • Burberry designs and sources apparel and accessories, distributing
     through a diversified network of retail, wholesale and licensing channels
     worldwide.

   • Burberry has five strategic themes to underpin its growth: leverage the
     franchise; intensify non-apparel development; accelerate retail-led growth;
     invest in under-penetrated markets; pursue operational excellence.

   • At 31 December 2007, Burberry had 94 retail stores globally, with 208
     concessions, 35 outlets and 66 stores operated under franchise.

   • Burberry was founded in 1856 and is listed on the London Stock Exchange
     (BRBY.L).


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