FTSE retailers issued five profit warnings in the second quarter of 2026, up from three in the first quarter, with all five citing the Middle East conflict as a contributing factor. This marks only the third time since 2007 that the retail sector has recorded more warnings in the second quarter than the first. Across the first half of 2026, 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 to rising costs, weaker consumer confidence, and tightening margins, even as sales volumes 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, with policy shifts and geopolitical instability driving 53% of these warnings, the highest proportion attributed to this factor in more than 25 years.