Wires

Burberry to bring perfume business in-house- sources

PARIS, Oct 10 (Reuters) - British luxury brand Burberry

is expected to announce in its trading update onThursday that it is bringing its perfume business in-house afterits contract with Interparfums ends on Dec.31,industry sources close to the matter said.

"Burberry will say that they are bringing the(perfume)operation in-house," one of the sources said onWednesday. "Burberry believe that they can accelerate the growthof their perfume business better themselves," the same sourceadded.

When Burberry agreed to end its contract with Interparfumsin July, it said it would review its options, which includedfinding another partner to make and distribute its perfumes ortake the whole business in-house.

Analysts said they expected an update on the issue inBurberry's half-year trading statement on Thursday.

(Reporting by Astrid Wendlandt; Editing by Leigh Thomas)

((astrid.wendlandt@thomsonreuters.com)(33149495440)(Reuters

Messaging: astrid.wendlandt.thomsonreuters@reuters.net))

Keywords: BURBERRY LICENCE/