Counselor Top 40 distributor 4imprint (asi/197045) said Wednesday that order counts were down about 2% during the first four months of the year compared to the same period in 2024 while also indicating that it expects supply chain disruption and higher product costs in the second half of 2025 – primarily a consequence of U.S. tariff policy.

The insights came in a trading update the publicly traded company issued to investors in advance of its annual general meeting.

Paul Moody, 4imprint (asi/197045)

While order counts declined, 4imprint Chairman Paul Moody noted that average order values through the first four months of 2025 were “even” with levels seen in the comparable period in 2024. He said revenue for the four-month span was “in line” with the prior year’s performance but didn’t give specific numbers.

“[4imprint] has delivered a resilient operational and financial performance in the early part of 2025 against the backdrop of volatile macro-economic conditions,” Moody asserted. “Gross margins have remained strong in the period, and the marketing mix has provided the flexibility and efficiency we anticipated.”

Moody said that the United States’ decision to lower tariffs on imports from China for at least 90 days, a move that went into effect on May 14, has “moderated” the impact of the levies temporarily. Still, he anticipates “an element of supply chain disruption and higher product costs” on the back end of 2025 as a result of U.S. import duties and tariff-related issues.

Potential additional impacts from whatever direction tariff policy takes on the broader economy, which can affect demand for promotional products positively or negatively, is difficult to predict, Moody said.

Even so, citing a strong balance sheet and other factors, Moody said the board of directors “remains confident in (4imprint’s) ability to navigate the current uncertain environment, delivering the best possible near-term financial results while positioning the business to take advantage of opportunities that will present themselves as certainty returns.”

Tariffs that President Donald Trump’s administration have advanced or threatened in 2025 have significantly impacted the promotional products industry. In the first quarter of 2025, promotional products distributors sales declined, on average, by 3.6% year over year, according to the Distributor Quarterly Sales Survey from ASI Research. Suppliers saw collective sales retreat, on average, by 4.8% in Q1 2025.

4imprint’s full-year 2024 North American promo sales increased by 3%, reaching $1,342.7 billion. Total company sales across all of the firm’s geographic markets – North America and U.K./Ireland – rose 3% on an annual basis in 2024 to $1,367.9 billion.

Operating a direct-to-buyer e-commerce model, 4imprint is headquartered in London, U.K., but has its main operational footprint in Oshkosh, WI. The company generates the vast majority of its business in North America.

Based on reported 2023 North American promotional products revenue of $1,302.6 billion, 4imprint ranked first on Counselor’s most recent list of the largest distributors in the industry. The new rankings are due out this summer.