Results Centre
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2011

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Burberry Group plc, the global luxury company, today announces its results for the six months ended 30 September 2011.

"Burberry has delivered a strong first half, reflecting our continued investment in innovative design, digital marketing and retail strategies. This consistent performance, balanced across channels, regions and product divisions, is enabled by our closely connected global teams and creative thinking culture.

As we begin to see initial returns from five years of infrastructure investments, we are confident that this solid foundation will enable us to optimise both our strong brand momentum and the luxury sector's opportunities, especially in high-growth flagship and emerging markets.

As the team has demonstrated in the past, we remain mindful of, and prepared to react to, any local or global uncertainties as we drive for long-term sustainable growth."

Angela Ahrendts,
Chief Executive Officer.

HIGHLIGHTS

Consistent double-digit revenue growth
- In retail, wholesale, all regions and all product divisions

Strong financial performance
- Revenue up 29% to £830m
- Adjusted PBT up 26% to £162m; reported PBT £159m
- Adjusted diluted EPS up 27% to 26.9p; reported diluted EPS 26.4p
- Net cash of £174m (2010: £181m)

Interim dividend up 40% to 7.0p per share, rebalancing between halves

Focus on investing to drive growth
- Capital expenditure plans unchanged at £180-200m in FY 2012
- Concentrated in flagship markets including London, Hong Kong and Chicago

All metrics and commentary in the Group Financial Highlights and Interim Management Report except reported eps exclude the results of the discontinued business in Spain. Discontinued operations in H1 2011 delivered an operating profit of £0.6m (H1 2010: operating loss of £10.3m, including a £7.6m restructuring charge)

Adjusted measures exclude the put option liability finance charge relating to the third party 15% economic interest in the Chinese business of £2.9m (H1 2010: £0.5m)

Underlying change is calculated at constant exchange rates

Certain financial data within this announcement have been rounded

GROUP FINANCIAL HIGHLIGHTS

Total revenue up 29% to £830m (2010: £641m)

Retail/wholesale revenue up 31%, operating profit up 32%; operating margin of 14.9% (2010: 14.8%)

Adjusted profit before tax up 26% to £161.6m (2010: £128.5m)

Reported profit before tax of £158.7m (2010: £128.0m)

Projected effective tax rate of 26.5% on adjusted profit before tax for the full year

Adjusted diluted EPS up 27% at 26.9p; reported diluted EPS of 26.4p

Interim dividend up 40% to 7.0p (2010: 5.0p); reflecting rebalancing between halves. Dividend policy remains a 40% payout based on full year adjusted diluted EPS

Net cash of £174m at 30 September 2011 (2010: £181m), after £63m investment in capital expenditure

	Six months to 30 September*		% change
£ million	2011	2010	reported FX	underlying
Revenue	829.6	641.1	29	30

Cost of sales	(257.7)	(211.5)	(22)
Gross margin	571.9	429.6	33
Operating expenses	(409.8)	(299.9)	(37)
Operating profit	162.1	129.7	25	25

Net finance charge^#	(0.5)	(1.2)
Adjusted profit before taxation	161.6	128.5	26	25
Exceptional items	(2.9)	(0.5)
Profit before taxation	158.7	128.0
Taxation	(42.8)	(36.0)
Discontinued operations	0.6	(10.3)
Non-controlling interest	0.7	1.4
Attributable profit	117.2	83.1

Adjusted EPS (pence) ^~	26.9	21.1
EPS (pence) ^~	26.4	18.7
Weighted average number of	444.5	445.0
ordinary shares (millions)

^*2010 has been re-presented to show the results of the discontinued business in Spain separately. Discontinued operations in H1 2011 delivered an operating profit of £0.6m (H1 2010: operating loss of £10.3m, including a £7.6m restructuring charge)

^#In H1 2011, the net finance charge in the table above excludes a £2.9m Chinese put option liability finance charge (H1 2010: £0.5m) included in the reported net finance charge of £3.4m (H1 2010: £1.7m)
Adjusted excludes the Chinese put option liability finance charge and discontinued operations

^~EPS is presented on a diluted basis

OUTLOOK

Retail

For the second half of FY 2012, average retail selling space is planned to increase by about 15%. Burberry expects to open a net eight to ten mainline stores, including in China, Latin America and a flagship in Paris.

Wholesale

In the second half, the planned shift from wholesale to retail continues, with the first half conversion of the five Saudi Arabia stores and menswear in Spain moving to a concession model. Further rationalisation of the brand’s distribution in the US and Europe continues. As a result, in the second half, against a period of tougher comparatives, Burberry expects wholesale revenueto increase by a mid single-digit percentage at constant exchange rates.

Licensing

For FY 2012, Burberry continues to expect licensing revenue at constant exchange rates to increase by a mid single-digit percentage. Licensing revenue at reported FX is still expected to increase by around 10%.

Capital expenditure

For FY 2012, capital expenditure is still planned at £180-200m.