Latest news with #EY-Parthenon
Fibre2Fashion
6 days ago
- Business
- Fibre2Fashion
Profit warnings by UK-listed firms up 20% YoY in Q2 2025: EY-Parthenon
UK-listed businesses issued 59 profit warnings in the second quarter (Q2) this year—a 20-per cent rise year on year (YoY), according to an EY-Parthenon report, which revealed that 46 per cent of those warnings cited policy change and geopolitical uncertainty as a leading factor—the highest percentage ever recorded for this cause and up from just 4 per cent during the same period last year. Nearly a fifth (19 per cent) of such businesses issued at least one warning in the last 12 months. A profit warning is a public statement issued by a company to inform its shareholders and the public that its financial performance is expected to be lower than previously anticipated. UK-listed businesses issued 59 profit warnings in Q2 2025â€'a 20-per cent rise YoY, an EY-Parthenon report said. Close to a fifth issued at least one warning in the last 12 months. Forty-six per cent of those warnings cited policy change and geopolitical uncertainty as a top factor. Two-fifths of those cited contract and order cancellations or delays, while 34 per cent cited tariff-related impacts. Profit warnings citing contract and order cancellations or delays remained at a record level in Q2 (40 per cent), while 34 per cent cited tariff-related impacts, including weaker demand, supply chain disruption, and exchange-rate volatility. Retail was among the sectors with the highest number of profit warnings during the second quarter. EY-Parthenon is the strategy consulting arm of Ernst & Young (EY), focusing on transformative strategy and transactions. Fibre2Fashion News Desk (DS)
Fibre2Fashion
21-07-2025
- Business
- Fibre2Fashion
Italy's GDP may drop 1.4% if US tariffs hit 30%: EY-Parthenon Bulletin
Italy's gross domestic product (GDP) may reduce by an estimated 0.9 per cent if US tariffs are 20 per cent, and the reduction may be 1.4 per cent in case tariffs are 30 per cent—effectively wiping out expected growth, with an estimated negative impact of just under €30 billion (~$34.92 billion) between 2025 and 2026, according to the second edition of the EY-Parthenon Bulletin. EY forecasts Italian GDP growth of 0.6 per cent this year, and that may rise to 0.8 per cent in 2026. Italy's GDP may drop by 0.9 per cent if US tariffs are 20 per cent, the EY-Parthenon Bulletin said. It may fall by 1.4 per cent in case tariffs are 30 per centâ€'effectively wiping out expected growth. It forecasts 2025 GDP growth of 0.6 per cent, and that may rise to 0.8 per cent in 2026. Despite this challenging scenario, Italian companies are demonstrating a strong ability to react internationally. EY-Parthenon is the strategy consulting arm of Ernst & Young (EY), focusing on transformative strategy and transactions. If tariffs were confirmed at 20 per cent, as announced in early April, the economic impact is estimated at around €20 billion, a 65 per cent contraction compared to growth expectations, i.e., minus 0.9 per cent cumulative between 2025 and 2026. Despite this challenging scenario, Italian companies are demonstrating a strong ability to react internationally, Marco Daviddi, managing partner EY-Parthenon in Italy, wrote in the bulletin. In the first six months of 2025, there was significant growth in investments by Italian companies in foreign targets, with 143 announced acquisitions, compared to 122 in the same period of 2024, marking a 17 per cent increase. The value of transactions also increased, from €7.1 billion in the first half of 2024 to €13.5 billion in the same period of 2025, with the industrial sector being the leading sector, accounting for 24 per cent of transactions. The growth in mergers and acquisitions was moderate: 6 per cent in the number of deals in the first half this year, but with a halving in value compared to the same period in 2024. Industry (22 per cent), consumer goods (18 per cent) and technology, services and energy (11 per cent) remain the most active sectors. Fibre2Fashion News Desk (DS)
Leader Live
21-07-2025
- Business
- Leader Live
Retail profit warnings more than double as high street pressures mount
The latest report from EY-Parthenon also revealed that overall profit warnings among UK-listed firms jumped by a fifth year-on-year in the second quarter – with a record proportion citing policy changes and geopolitical uncertainty as the leading factor. The data showed that seven UK-listed retailers, including supermarkets, cut profit guidance between April and June. Britain's retail sector has come under significant pressure since last autumn's Budget move to hike National Insurance Contributions (NICs) and the minimum wage, both taking effect in April. But EY said the high street was also facing tough consumer spending challenges, with shoppers cutting back and focusing on value. EY partner Silvia Rindone said the spike in retail warnings 'highlights both softening consumer demand and the deeper structural headwinds facing the sector'. 'Retailers we speak to tell us that falling sales are currently indicative of a longer-term shift, with consumers becoming more value-focused and less brand-loyal, which leaves cost-pressured retailers in a bind,' she said. Tariff woes sparked by US President Donald Trump waging a trade war also featured heavily in the report, contributing to a rise in the number of alerts more widely across corporate plc. The report found that the number of profit warnings issued by UK-listed companies rose by 20% to 59 in the second quarter compared with 49 a year ago. The top factor was policy change and geopolitical uncertainty, cited in nearly half (46%) of all warnings – up from 4% a year earlier and the highest since the study was launched over 25 years ago. Over one in three (34%) warnings flagged tariff-related impacts, such as weaker demand, supply chain disruption and volatility in currency movements. The proportion of warnings to cite contract and order cancellations or delays remained at a record high of 40% in the quarter. Jo Robinson, EY-Parthenon partner and turnaround and restructuring strategy leader, said: 'The latest profit warnings data reflects the scale of persistent uncertainty and how heavy it continues to weigh on UK businesses. 'While this uncertainty has been a recurring theme since mid-2024, it has intensified so far this year – driven largely by geopolitical tensions and policy shifts – compounding pressure on both earnings and forecasts. 'While the announcement of global tariffs has clearly played a part in amplifying uncertainty, they are just one factor among broader geopolitical and policy upheaval.'
South Wales Guardian
21-07-2025
- Business
- South Wales Guardian
Retail profit warnings more than double as high street pressures mount
The latest report from EY-Parthenon also revealed that overall profit warnings among UK-listed firms jumped by a fifth year-on-year in the second quarter – with a record proportion citing policy changes and geopolitical uncertainty as the leading factor. The data showed that seven UK-listed retailers, including supermarkets, cut profit guidance between April and June. Britain's retail sector has come under significant pressure since last autumn's Budget move to hike National Insurance Contributions (NICs) and the minimum wage, both taking effect in April. But EY said the high street was also facing tough consumer spending challenges, with shoppers cutting back and focusing on value. EY partner Silvia Rindone said the spike in retail warnings 'highlights both softening consumer demand and the deeper structural headwinds facing the sector'. 'Retailers we speak to tell us that falling sales are currently indicative of a longer-term shift, with consumers becoming more value-focused and less brand-loyal, which leaves cost-pressured retailers in a bind,' she said. Tariff woes sparked by US President Donald Trump waging a trade war also featured heavily in the report, contributing to a rise in the number of alerts more widely across corporate plc. The report found that the number of profit warnings issued by UK-listed companies rose by 20% to 59 in the second quarter compared with 49 a year ago. The top factor was policy change and geopolitical uncertainty, cited in nearly half (46%) of all warnings – up from 4% a year earlier and the highest since the study was launched over 25 years ago. Over one in three (34%) warnings flagged tariff-related impacts, such as weaker demand, supply chain disruption and volatility in currency movements. The proportion of warnings to cite contract and order cancellations or delays remained at a record high of 40% in the quarter. Jo Robinson, EY-Parthenon partner and turnaround and restructuring strategy leader, said: 'The latest profit warnings data reflects the scale of persistent uncertainty and how heavy it continues to weigh on UK businesses. 'While this uncertainty has been a recurring theme since mid-2024, it has intensified so far this year – driven largely by geopolitical tensions and policy shifts – compounding pressure on both earnings and forecasts. 'While the announcement of global tariffs has clearly played a part in amplifying uncertainty, they are just one factor among broader geopolitical and policy upheaval.'
North Wales Chronicle
21-07-2025
- Business
- North Wales Chronicle
Retail profit warnings more than double as high street pressures mount
The latest report from EY-Parthenon also revealed that overall profit warnings among UK-listed firms jumped by a fifth year-on-year in the second quarter – with a record proportion citing policy changes and geopolitical uncertainty as the leading factor. The data showed that seven UK-listed retailers, including supermarkets, cut profit guidance between April and June. Britain's retail sector has come under significant pressure since last autumn's Budget move to hike National Insurance Contributions (NICs) and the minimum wage, both taking effect in April. But EY said the high street was also facing tough consumer spending challenges, with shoppers cutting back and focusing on value. EY partner Silvia Rindone said the spike in retail warnings 'highlights both softening consumer demand and the deeper structural headwinds facing the sector'. 'Retailers we speak to tell us that falling sales are currently indicative of a longer-term shift, with consumers becoming more value-focused and less brand-loyal, which leaves cost-pressured retailers in a bind,' she said. Tariff woes sparked by US President Donald Trump waging a trade war also featured heavily in the report, contributing to a rise in the number of alerts more widely across corporate plc. The report found that the number of profit warnings issued by UK-listed companies rose by 20% to 59 in the second quarter compared with 49 a year ago. The top factor was policy change and geopolitical uncertainty, cited in nearly half (46%) of all warnings – up from 4% a year earlier and the highest since the study was launched over 25 years ago. Over one in three (34%) warnings flagged tariff-related impacts, such as weaker demand, supply chain disruption and volatility in currency movements. The proportion of warnings to cite contract and order cancellations or delays remained at a record high of 40% in the quarter. Jo Robinson, EY-Parthenon partner and turnaround and restructuring strategy leader, said: 'The latest profit warnings data reflects the scale of persistent uncertainty and how heavy it continues to weigh on UK businesses. 'While this uncertainty has been a recurring theme since mid-2024, it has intensified so far this year – driven largely by geopolitical tensions and policy shifts – compounding pressure on both earnings and forecasts. 'While the announcement of global tariffs has clearly played a part in amplifying uncertainty, they are just one factor among broader geopolitical and policy upheaval.'
