First Quarter Trading Update

Burberry Group PLC
14 July 2003

                               Burberry Group plc

                          First Quarter Trading Update

14 July 2003.  Burberry Group plc reports on trading for its first quarter ended
30 June 2003.

Highlights

•        Total revenues increased by 18%, 17% underlying*

•        Retail sales up 21% on an underlying basis, driven by new stores

•        High single digit wholesale sales growth anticipated for the Autumn/
         Winter 2003 season; wholesale revenue increased 5% in the quarter

•        Licensing revenue up 7% underlying

*Underlying figures are calculated at constant exchange rates and exclude the
impact of the July 2002 acquisition of the operations of Burberry's distributor
in Korea  (the 'Korea acquisition').

Commenting on the trading results, Rose Marie Bravo, Chief Executive, stated, 
'Following the very challenging start to the year due to external factors,
Burberry achieved gradual improvement in trading as the quarter progressed.
During the period, we continued to invest in our business through retail
expansion, product development efforts and the upgrading of infrastructure in
keeping with our long-range strategies.  Burberry's results to date and the
improving operating environment are consistent with management's expectations
for the financial year.'

Total revenues

Total revenues in the first quarter increased by 18% (22% at constant exchange
rates), or 17% on an underlying* basis (i.e. at constant exchange rates and
excluding the impact of the Korea acquisition) compared to the same period last
year.

Retail

Total retail sales increased by 33% (boosted by the Korea acquisition) and
accounted for approximately 53% of total revenue in the quarter.  On an
underlying basis, retail sales increased by 21%, driven primarily by
contributions from stores opened in 2002/03.  Comparable store sales, which
declined modestly over the first seven weeks of the period, benefited from a
strong summer promotional period and recorded a marginal gain for the quarter as
a whole.  During the quarter, the US remained the best performing market.
Europe continued to be soft, while non-Japan Asia markets exhibited signs of
recovery.  While work progressed on Burberry's retail expansion, including the
Milan store which is scheduled to open in September, no new stores were planned
to open during the first quarter.  Burberry remains on schedule to increase
retail selling space by approximately 10% during the financial year.

Wholesale

As previously announced, Burberry anticipates high single digit wholesale sales
growth for the Autumn/Winter 2003 season.  In the first quarter, total wholesale
sales increased by 5%.  Underlying sales increased by 14%, partially as a result
of the earlier shipments of autumn/winter product relative to the prior year.
The majority of autumn/winter product shipments are concentrated in the second
quarter of each financial year.

Licensing

Total licensing revenues in the quarter increased by 4%, 7% on an underlying
basis.  Royalties from the Japanese market reflected increases in certain
royalty rates and single-digit volume gains. The volume gain is encouraging in
light of the strong growth achieved in the comparable period last year and the
lacklustre economic environment.

Burberry will provide a first half trading update on 14 October and release its
interim results for the six months to 30 September 2003 on 18 November.

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 July 2002 acquisition of the operations of Burberry's distributor
in Korea  (the 'Korea acquisition').

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
            The company news service from the London Stock Exchange