Retailers issued the most profit warnings in the three months to June, despite the overall number of UK companies issuing warnings dropping sharply.
Businesses issued 45 warnings according to advisory group EY, a 40% fall on the previous quarter and a third lower than the same time last year. However, seven of those warnings came from retailers and EY warned against ‘complacency.’
“The reality in the market is that earnings forecasts have dipped and the economy’s relative outperformance has enabled more companies to meet already low expectations,” said Alan Hudson, EY’s UK head of restructuring.
“Profit warnings may not rise dramatically without a shock, given that companies seem to have come to terms with passing a lower bar, but trickier conditions will catch out more companies and expose weaknesses.”