Latest news with #EYParthenon
Fashion Network
a day ago
- Business
- Fashion Network
UK-listed retailers issued more profit warnings in Q2
More concern for UK retail with listed FTSE retailers issuing seven profit warnings during Q2 2025, more than double the amount recorded in the previous quarter, according to EY Parthenon's latest Profit Warnings report. FTSE retail companies issued four profit warnings during the period, but combined with the FTSE Personal Care, Drug and Grocery sector, which includes supermarkets, there were seven warnings from listed retailers. Despite this increase, in the first half of 2025, FTSE Retailers issued a total of six profit warnings, a significant fall from the 12 warnings issued during the same period last year. Silvia Rindone, EY Partner and UK&I Retail Lead, said: 'This [Q2] spike 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 added: 'Despite ongoing pressures, including the rise in National Insurance Contributions and the National Living Wage, alongside tariffs, investment in technology including AI remains essential. The winners will be those who get the basics right, such as range, service, and pricing, whilst continuing to build for the future with leaner models, sharper propositions and digital resilience.' In Q2, the number of profit warnings issued by UK-listed companies overall rose by 20% to 59 compared to 49 in the same period last year. Over the last 12 months, nearly a fifth (19%) of UK-listed businesses have issued at least one profit warning. The leading factor behind profit warnings during the second quarter was policy change and geopolitical uncertainty, cited in nearly half (46%) of warnings. This marked a significant increase from just 4% in Q2 2024, and the highest percentage recorded for this cause in more than 25 years of EY's analysis.
Fashion Network
a day ago
- Business
- Fashion Network
UK-listed retailers issued more profit warnings in Q2
More concern for UK retail with listed FTSE retailers issuing seven profit warnings during Q2 2025, more than double the amount recorded in the previous quarter, according to EY Parthenon's latest Profit Warnings report. FTSE retail companies issued four profit warnings during the period, but combined with the FTSE Personal Care, Drug and Grocery sector, which includes supermarkets, there were seven warnings from listed retailers. Despite this increase, in the first half of 2025, FTSE Retailers issued a total of six profit warnings, a significant fall from the 12 warnings issued during the same period last year. Silvia Rindone, EY Partner and UK&I Retail Lead, said: 'This [Q2] spike 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 added: 'Despite ongoing pressures, including the rise in National Insurance Contributions and the National Living Wage, alongside tariffs, investment in technology including AI remains essential. The winners will be those who get the basics right, such as range, service, and pricing, whilst continuing to build for the future with leaner models, sharper propositions and digital resilience.' In Q2, the number of profit warnings issued by UK-listed companies overall rose by 20% to 59 compared to 49 in the same period last year. Over the last 12 months, nearly a fifth (19%) of UK-listed businesses have issued at least one profit warning. The leading factor behind profit warnings during the second quarter was policy change and geopolitical uncertainty, cited in nearly half (46%) of warnings. This marked a significant increase from just 4% in Q2 2024, and the highest percentage recorded for this cause in more than 25 years of EY's analysis.
Fashion Network
a day ago
- Business
- Fashion Network
UK-listed retailers issued more profit warnings in Q2
More concern for UK retail with listed FTSE retailers issuing seven profit warnings during Q2 2025, more than double the amount recorded in the previous quarter, according to EY Parthenon's latest Profit Warnings report. FTSE retail companies issued four profit warnings during the period, but combined with the FTSE Personal Care, Drug and Grocery sector, which includes supermarkets, there were seven warnings from listed retailers. Despite this increase, in the first half of 2025, FTSE Retailers issued a total of six profit warnings, a significant fall from the 12 warnings issued during the same period last year. Silvia Rindone, EY Partner and UK&I Retail Lead, said: 'This [Q2] spike 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 added: 'Despite ongoing pressures, including the rise in National Insurance Contributions and the National Living Wage, alongside tariffs, investment in technology including AI remains essential. The winners will be those who get the basics right, such as range, service, and pricing, whilst continuing to build for the future with leaner models, sharper propositions and digital resilience.' In Q2, the number of profit warnings issued by UK-listed companies overall rose by 20% to 59 compared to 49 in the same period last year. Over the last 12 months, nearly a fifth (19%) of UK-listed businesses have issued at least one profit warning. The leading factor behind profit warnings during the second quarter was policy change and geopolitical uncertainty, cited in nearly half (46%) of warnings. This marked a significant increase from just 4% in Q2 2024, and the highest percentage recorded for this cause in more than 25 years of EY's analysis.
Fashion Network
a day ago
- Business
- Fashion Network
UK-listed retailers issued more profit warnings in Q2
More concern for UK retail with listed FTSE retailers issuing seven profit warnings during Q2 2025, more than double the amount recorded in the previous quarter, according to EY Parthenon's latest Profit Warnings report. FTSE retail companies issued four profit warnings during the period, but combined with the FTSE Personal Care, Drug and Grocery sector, which includes supermarkets, there were seven warnings from listed retailers. Despite this increase, in the first half of 2025, FTSE Retailers issued a total of six profit warnings, a significant fall from the 12 warnings issued during the same period last year. Silvia Rindone, EY Partner and UK&I Retail Lead, said: 'This [Q2] spike 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 added: 'Despite ongoing pressures, including the rise in National Insurance Contributions and the National Living Wage, alongside tariffs, investment in technology including AI remains essential. The winners will be those who get the basics right, such as range, service, and pricing, whilst continuing to build for the future with leaner models, sharper propositions and digital resilience.' In Q2, the number of profit warnings issued by UK-listed companies overall rose by 20% to 59 compared to 49 in the same period last year. Over the last 12 months, nearly a fifth (19%) of UK-listed businesses have issued at least one profit warning. The leading factor behind profit warnings during the second quarter was policy change and geopolitical uncertainty, cited in nearly half (46%) of warnings. This marked a significant increase from just 4% in Q2 2024, and the highest percentage recorded for this cause in more than 25 years of EY's analysis.
Yahoo
2 days ago
- Business
- Yahoo
Retail profit warnings more than double as high street pressures mount
Profit alerts among retailers more than doubled in the second quarter as consumers reined in their spending and firms faced soaring wage costs, according to a report. 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.'
