Trading Statement

Burberry Group PLC
11 July 2007


Burberry Group plc

First Quarter Trading Update

Interim Management Statement

11 July 2007. Burberry Group plc reports on trading for the first quarter ended
30 June 2007.

Highlights
   • Total revenue increased 30% on an underlying* basis
   • Retail sales rose 25% underlying driven by new and existing stores
   • Wholesale revenue increased 51% underlying
        -  Burberry continues to anticipate a mid-teens percentage underlying
           increase in wholesale revenue for the first half
   • Licensing revenue increased 6% underlying

Revenue by geographical origin (statutory accounts format)

                                   First Quarter to 30 June
                                        ---------------
£ million                            2007            2006               % change
                                   --------        --------             --------

Europe (ex Spain)                    63.1            44.1                   43
Spain                                17.9            15.2                   18
North America                        40.9            35.5                   15
Asia Pacific                         45.6            40.6                   12
                                   --------        --------             --------
Total                               167.5           135.4                   24



Revenue by channel of distribution

                     First Quarter to 30 June                 % change
                         ---------------                 ------------------
£ million               2007             2006          Reported      Underlying*
                      --------         --------       ---------        ---------
Retail                  97.0             82.0              18               25
Wholesale               55.3             37.7              47               51
Licensing               15.2             15.6              (3)               6
                      --------         --------       ---------        ---------
Total                  167.5            135.4              24               30


* Underlying change is calculated at constant exchange rates. 2007/08 underlying
figures are calculated at the same exchange rates used in the 2006/07 year's
reported results for the period.

Commenting on the trading results, Angela Ahrendts, Chief Executive Officer,
stated, 'The year is off to a good start. Our key strategies continue to drive
strong retail performance and we are pleased that these retail-oriented
initiatives are benefiting wholesale partners as well. Results for the quarter
are consistent with our expectations for the full financial year.'

Total revenue

Total revenue in the first quarter increased 30% on an underlying basis (i.e.
adjusted for year over year exchange rate differences). Total reported revenue
increased 24% in the period.

Retail

Retail sales accounted for approximately 58% of total reported revenue in the
quarter.

Retail sales in the period increased 25% underlying, 18% reported. Comparable
store sales increased 9%, against a strong prior year comparison. Average
selling space increased approximately 14%. During the quarter, Burberry opened
four stores, in Antwerp (Belgium), Bologna (Italy), Puerto Banus (Spain) and
Tampa (Florida). The Group opened a net six concessions, including those in
Italy, Spain, Singapore and the UK, and three outlet stores. Burberry remains on
schedule to increase average net retail selling space by approximately 13% for
the financial year.

Retail performance was broadly consistent across the regions. In the US, gains
were balanced between existing and new store contributions. New space additions
were complemented by good gains at existing stores to produce strong performance
in Europe, where Italy and Spain were the best performing markets. Led by Hong
Kong, Malaysia and Australia, Asia Pacific continued to achieve strong sales
growth through a combination of new and existing store contributions. Throughout
the retail channel, key merchandise categories included outerwear, runway
apparel, luxury handbags and shoes.

Wholesale

Wholesale sales accounted for approximately 33% of total reported revenue in the
quarter.

Wholesale sales increased 51% underlying, 47% reported. In this typically small
wholesale quarter, the gain partially reflected the acceleration of shipments in
advance of second quarter requirements, as well as the impact of key strategies,
including the new market calendar and replenishment. The majority of autumn/
winter product shipments continue to be concentrated in the second quarter of
each financial year. Burberry continues to anticipate a mid-teens percentage
underlying increase in first half wholesale sales relative to the previous year.

In conjunction with a local partner, the Group opened a franchise store in
Mexico City during the quarter.

Licensing

Total licensing revenue in the quarter increased 6% underlying. In Japan,
revenue increased moderately on gains from ongoing licences. Product licences
produced solid gains led by eyewear. Exchange rate differences between reporting
periods, primarily yen, resulted in a 3% reported decline in licensing revenue
for the quarter. Burberry continues to expect broadly flat underlying licensing
revenue relative to 2006/07 for the full financial year.

Operations

In advance of the planned 2008 headquarters relocation, Burberry completed the
sale of its central London building during the quarter. Inclusive of one-time
costs associated with the move, the Group expects to record a net pre-tax gain
of approximately £15 million associated with the transaction in the 2007/08
financial year.

Burberry will provide a first half trading update on 16 October and release
interim results for the six months to 30 September on 14 November.

Enquiries:

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

Brunswick                                               020 7404 5959
David Yelland
Laura Cummings
Robert Gardener


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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