Retailers on the Financial Times Stock Exchange (FTSE) issued five profit warnings during the second quarter (Q2) of 2026, an increase from three in Q1, according to the latest ‘Profit Warnings’ report from EY-Parthenon.
This marks only the third time since 2007 that the retail sector has recorded more warnings in the second quarter than the first
All five warnings issued by retailers in the quarter cited the Middle East conflict as a contributing factor, underlining how vulnerable the sector remains to disruption originating beyond UK borders. Across the first half of 2026 overall, FTSE retailers issued eight profit warnings in total, two more than the six recorded over the equivalent period last year. The report attributes ongoing pressure on the sector to a combination of rising costs, weaker consumer confidence and tightening margins, even as sales volumes have begun to show signs of recovery.
More broadly, UK-listed companies across all sectors issued 59 profit warnings in the second quarter, a slight rise from 55 in the first quarter. Policy shifts and geopolitical instability were identified as a key driver behind 53% of these warnings, the highest proportion attributed to this factor in more than 25 years of the report’s history. By sector, travel and leisure recorded the highest number of profit warnings in the second quarter, with seven, its highest quarterly total since the third quarter of 2022, when nine were recorded.