Financial News

INTERIM RESULTS

14 NOVEMBER 2006

Burberry Group plc reports interim results for its first half to 30 September 2006.

Summary of Results

	Six months to September
	2006	2005	Change
	£m	£m	%
Turnover	392.0	354.9	11
Operating profit before Atlas costs⁽¹⁾	84.2	78.8	7
Operating profit	74.6	75.8	(2)
Attributable profit	49.9	53.1	(6)

Diluted EPS before Atlas costs	12.5p	11.3p	11
Diluted EPS	11.1p	10.9p	2
Dividend per share	2.875p	2.5p	15
Diluted weighted average number of Ordinary Shares	449.8m	488.8m	(8)

Financial Highlights

Total revenues increased 10% on an underlying⁽²⁾ basis to £392 million

Retail revenues increased 23% underlying
Wholesale revenues increased 1% underlying
Licensing revenue increased 5% underlying

Operating profit before Atlas costs increased 7% to £84 million

A 10% gain adjusted for one-time items and currency movements

Operating margin before Atlas costs of 21.5% vs 22.2% in prior period

Movement primarily reflects reduced licensing share of revenue

Diluted EPS before Atlas costs increased 11% to 12.5p
First half performance consistent with Group trading expectations for the full financial year

Exchange rate movements will affect reported results

Interim dividend increased 15% to 2.875p per Ordinary Share
£38 million shares repurchased in the half
Second half outlook

Increased second half wholesale sales growth expectations to high single digit underlying
Plan 14% average retail selling space increase for second half
Expect underlying licensing revenue broadly flat relative to the previous year period
Capital expenditure expected to total £40-45 million for the full financial year

⁽¹⁾ Project Atlas costs of £9.6 million (2005: £3.0m) relate to the Group’s infrastructure redesign initiative announced in May 2005.
⁽²⁾ Underlying figures exclude the financial effect of the Taiwan acquisition and the portion of Burberry’s 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 2005/06 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”) and initiated actions related to the retail conversion in Spain during the third quarter of 2005/06.

Strategic and Operating Highlights

Excellent retail progress

Opened six new stores, a replacement store, five concessions and two outlets
Retail share of revenue increased to 43% from 35% in previous period
Accelerated pace of retail expansion to produce expected 13% increase in average selling space for the financial year

Advanced key accessory strategies

Autumn 2006 luxury handbag styles achieving excellent results at retail
Added senior supply chain, design and development talent

Launched major new men’s fragrance, Burberry London, in August 2006
Important operational achievements

Project Atlas successfully completed first major SAP implementations on schedule
Implemented new market calendar
Initiated basic inventory replenishment programme

Angela Ahrendts, Chief Executive Officer, stated, “Led by excellent retail performance, strong outerwear sales and enthusiastic demand for new accessories collections, Burberry delivered a 10% gain in adjusted operating income in the first half. The management team moves confidently into the second half as we continue to execute our strategies, capitalising on front-end strengths, while improving upon back-end challenges, looking to extend this momentum to the full financial year.”

Management will discuss these results during a presentation to analysts and institutions at 1:00pm today at Merrill Lynch Financial Centre, The Auditorium, 100 Newgate Street, London EC1A 1HQ (telephone +44 (0) 20 7968 0577). The presentation will also be broadcast live on the Internet at www.burberryplc.com and can be accessed by telephone at +44 (0) 20 7081 7194 (UK and international) and +1 866 432 7186 (US). Replay: +44 (0) 20 8196 1998 and +1 866 583 1035 (US), account number 299766.

Enquiries:

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

Brunswick		020 7404 5959
Susan Gilchrist
Laura Cummings
Robert Gardener

The financial information contained in this announcement has not been audited.
Certain statements made in this announcement 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.

View the full Interim Results Announcement in PDF format.

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