Trading Statement

Burberry Group PLC
11 January 2006



                              Burberry Group plc

                         Third Quarter 2005/06 Trading Update

11 January 2006. Burberry Group plc reports on trading for the third quarter
ended 31 December 2005.

Financial Highlights

   • Retail sales increased 11% on an underlying* basis driven by new and
     existing stores
   • Wholesale revenues decreased 21% underlying, primarily reflecting
     shipment timing differences relative to the comparative period
         - Burberry anticipates a mid-to-high single digit underlying decline in
           wholesale sales for the second half
   • Licensing revenues increased 3% underlying
   • Total revenues increased 1% on an underlying basis, up 5% reported


                                       Third Quarter                                    Nine Months
                                    ----------------------                         ----------------------
                Reported                   % change                Reported                   % change
            -----------------       ----------------------     -----------------       ----------------------
£ million   2005/06   2004/05       Reported   Underlying*     2005/06   2004/05       Reported   Underlying*
            -------   -------       --------   -----------     -------   -------       --------   -----------

Retail          115        95             21            11         242       206             18             9
Wholesale        36        47            (25)          (21)        229       245             (7)           (3)
Licence          18        18              0             3          58        57              1             3
             ------   -------        -------       -------      ------   -------        -------       -------
Total           168       161              5             1         529       509              4             3

* Underlying figures exclude the financial effect of Burberry's Taiwan-related
business and the portion of its business in Spain affected by the retail
conversion in both reporting periods. In addition, underlying figures are
calculated at the same exchange rates used in the 2004/05 year's reported
results for the period. Burberry completed the acquisition of the operations and
assets of its distributors in Taiwan in August 2005 (the 'Taiwan Acquisition').

Commenting on the trading results, Rose Marie Bravo, Chief Executive, stated,
'In this retail dominated quarter, we were pleased with the results for the
all-important holiday period. The business was led by our core outerwear and
reinvigorated classics. At the same time, the favourable initial response to
early spring deliveries across all categories provides a good start to
Burberry's 150th year.'

Total revenues

Total revenues in the third quarter ended 31 December 2005 increased 1% on an
underlying basis (i.e. excluding (i) the financial effect of the Taiwan
Acquisition, (ii) the portion of Burberry's business in Spain affected by the
retail conversion and (iii) exchange rate differences). Total reported revenues
increased 5%. The Taiwan Acquisition and Spain retail conversion shift sales
from Burberry's wholesale channel to its retail channel. In determining
underlying performance, the financial effect of these affected businesses are
excluded from both reporting periods.

Retail

Retail sales accounted for approximately 68% of total revenues in the period.

Retail sales in the third quarter increased 11% underlying, 21% reported, driven
by contributions from new and existing stores. The acquisition of 12 retail
locations in Taiwan during August 2005 also contributed approximately five
percentage points of the reported gain. During the quarter, Burberry opened
stores in San Diego (California) and Palm Beach Gardens (Florida), two
concessions and three outlet stores. On a year on year basis, average selling
space increased approximately 9% underlying in the quarter.

Retail sales growth varied by region. In the US market, solid gains were driven
by contributions from new and existing stores. In Europe, the combination of new
stores and increases at existing stores generally produced strong gains in
Continental markets. The UK market improved marginally relative to recent
trends. In Asia, sales in Korea firmed relative to recent periods, producing a
modest increase in this market for the quarter. Hong Kong continued to
experience vigorous growth, driving an underlying gain across South Asia
markets.

Burberry plans to open one store and an outlet in Florida during the fourth
quarter. Originally scheduled to open in the third quarter, these stores were
affected by hurricane-related construction delays. The Group expects to add
approximately 9% average retail selling area for the second half and 9% for the
financial year (excluding the impact of the Taiwan Acquisition and Spain retail
conversion).

Wholesale

Wholesale sales accounted for approximately 21% of total revenues in the period.

In the quarter, total wholesale sales decreased 21% underlying, 25% reported.
The decline in underlying sales primarily reflected variances in the timing of
customer shipments relative to the comparative period. Wholesale sales were also
affected by soft demand in Spain and fewer reorders in certain other markets.
The third quarter of each financial year is a small wholesale quarter with the
large majority of spring/summer merchandise shipments concentrated in the fourth
quarter.

For the second half of 2005/06, Burberry anticipates a mid-to-high single digit
decline in underlying wholesale sales. In addition, as previously stated, the
retail conversion in Spain and the Taiwan Acquisition will also reduce reported
wholesale sales in the second half relative to the previous year.

In conjunction with local partners, the Group opened three franchise stores in
the quarter. In November, Burberry opened its first store in India's emerging
luxury market, in Mumbai. During the period, the Group opened a store in Athens
and a third store was added in Dubai.

Licensing

Licensing revenues in the quarter increased 3% on an underlying basis, 0%
reported. In Japan, a modest increase in licensing revenue largely reflected
royalty rate increases as Burberry continues its initiatives to enhance brand
positioning in this market. Global product licences generally performed in line
with recent trends, including preparation for a major fragrance launch in
February, transition to a new eyewear licence and continued strength in the
watch category.

Burberry will provide a second half trading update on 12 April.



Enquiries:

Burberry                                                020 7968 0577
Stacey Cartwright           CFO
Matt McEvoy                 Strategy and IR
John Scaramuzza             Strategy and IR

Brunswick                                               020 7404 5959
Susan Gilchrist
Robert Gardener
Laura Cummings


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.



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