Analysis of UK Profit Warnings: Sector Insights

Every quarter, we provide the latest sector insights from our Profit Warnings analysis, delving deep into two specific sectors and the challenges facing the companies and stakeholders alike.  

For Q3 2019, we look at the FTSE Retail sector as well as the FTSE Industrial Transportation sector, analysing the headwinds facing both. 

  • FTSE Retailers

    Bracing for a tough Christmas

    FTSE Retailers issued 28 profit warnings in the first three quarters of 2019, with 31% of the sector warning in the last 12 months.

    The odds are heavily stacked against retailers as they go into the all-important final quarter. Retail sales are under pressure, whilst structural changes continue unabated.

    Differentiate to create value

    It’s vital that retailers can differentiate their offering and create value for their customers in a tight and highly competitive market.

  • FTSE Industrial Transportation

    Headwinds increasing

    FTSE Industrial Transportation companies issued three profit warnings in Q3 2019, with 36% of the sector warning in the last 12 months.

    The sector’s correlation with the economic cycle is underlined by its previous profit warnings peaks. In 2019, the sector faces further economic upheaval as a downturn in trade and investment weigh on the global economy.

    Trouble beyond trade

    Beyond Brexit, there are further economic and structural challenges ahead as companies and consumers make increasing supply chain demands.