A profit warning is a statement made by a company to its shareholders and the general public indicating that its profits for a particular period are expected to be lower than previously forecast. Profit warnings are typically issued when a company experiences unexpected difficulties that have a negative impact on its financial performance. These difficulties can be due to a variety of factors, such as changes in market conditions, increased competition, or operational problems. Profit warnings can be a cause for concern for investors, as they may indicate that a company is facing challenges that could affect its future profitability.