UK retailers issue five profit warnings in Q2 amid Middle East conflict

Retailers connected the Financial Times Stock Exchange (FTSE) issued 5 nett warnings during the 2nd 4th (Q2) of 2026, an summation from 3 successful Q1, according to the latest 'Profit Warnings' study from EY-Parthenon.

This marks lone the 3rd clip since 2007 that the retail assemblage has recorded much warnings successful the 2nd 4th than the first.

All 5 warnings issued by retailers successful the 4th cited the Middle East struggle arsenic a contributing factor, underlining however susceptible the assemblage remains to disruption originating beyond UK borders.

Across the archetypal fractional of 2026 overall, FTSE retailers issued 8 nett warnings successful total, 2 much than the six recorded implicit the equivalent play past year.

The study attributes ongoing unit connected the assemblage to a operation of rising costs, weaker user assurance and tightening margins, adjacent arsenic income volumes person begun to amusement signs of recovery.

More broadly, UK-listed companies crossed each sectors issued 59 nett warnings successful the 2nd quarter, a flimsy emergence from 55 successful the archetypal quarter.

Policy shifts and geopolitical instability were identified arsenic a cardinal operator down 53% of these warnings, the highest proportionality attributed to this origin successful much than 25 years of the report's history.

By sector, question and leisure recorded the highest fig of nett warnings successful the 2nd quarter, with seven, its highest quarterly full since the 3rd 4th of 2022, erstwhile 9 were recorded.

Home operation followed with six warnings portion bundle and machine services, concern enactment services, and retail each logged five.

The concern enactment services class covers providers of concern services, concern supplies and recruitment.

The study besides notes that 18% of each UK-listed companies, astir 1 successful five, person issued astatine slightest 1 nett informing successful the past year.

This suggests that portion the wide fig of warnings appears to beryllium stabilising, fiscal unit crossed firm Britain has not eased substantially.

EY-Parthenon UK and Ireland retail pb Silvia Rindone said: "Looking ahead, the outlook for the 2nd fractional of the twelvemonth is finely balanced.

"Supportive factors specified arsenic seasonal request and argumentation developments whitethorn supply immoderate uplift, but ongoing outgo pressures, cautious consumers and geopolitical uncertainty mean execution volition beryllium captious successful determining which retailers outperform and which proceed to look challenges."

The FTSE 100 Index is the main UK banal marketplace scale and tracks the 100 largest companies listed connected the London Stock Exchange by marketplace capitalisation.

"UK retailers contented 5 nett warnings successful Q2 amid Middle East conflict" was primitively created and published by Retail Insight Network, a GlobalData owned brand.