Burberry is a distinctive luxury brand with international recognition and broad appeal. We design, source, manufacture and distribute high-quality apparel and accessories. Founded in Basingstoke, England, in 1856, we have a unique heritage associated with Great Britain and position ourselves as the authentic British lifestyle brand. From our founding, we have established a reputation for innovation, quality and style through developments such as the invention of gabardine, which we believe was the world’s first weatherproof and breathable fabric, and the creation of iconic products, including the trench coat, and of the Burberry check.

Our products include apparel for women, men and children and accessories such as handbags, scarves, small leather goods and silks. We manufacture a portion of our outerwear, with the majority of our products sourced from third parties. In certain product categories and geographies, we combine our expertise with that of licensing partners by selectively granting licences for the design, manufacture and distribution of products under the Burberry name which complement our brand and product offering. Our most significant licensing relationship is in Japan, where our partners design and manufacture products under the Burberry brand for distribution in that domestic market. We also maintain licensing relationships in specialised product categories such as eyewear and fragrance. We work closely with our partners to ensure brand consistency in terms of image, design, quality and distribution.

We sell our products in Europe, North America, Asia and the Middle East through our own directly operated stores and wholesale customers. At 30 September 2004 Burberry operated 151 retail locations consisting of 57 Burberry stores, 70 concessions and 24 outlet stores. Our wholesale customers include leading and prestige department stores, specialty retailers and franchise partners. In addition, our licensing partners sell products through specialised distribution channels. In 2003/04, we estimate that the total retail value of products sold globally under the Burberry brand is approximately £2.5 billion.

Since the arrival of a new management team, commencing in 1997, we have been repositioning the Burberry brand in line with its luxury heritage. We believe the improvement in our financial performance has been a direct result of this repositioning, including the renegotiation of our Japanese licence arrangements and the acquisitions of third-party distributors in Spain and Asia. Turnover has increased from £428 million in the year ended 31 March 2001 to £676 million in the year ended 31 March 2004. Total operating profit before goodwill amortisation has more than doubled from £69 million to £141 million over the same period.