Top 40 firm 4imprint (asi/197045), the North American promotional products industry’s largest distributorship, says that it’s on track to increase total global revenue to more than $1.3 billion in 2023, but noted that demand has softened in recent weeks amid a “more cautious macro-economic environment.”

Such was the word in a Nov. 7 trading update from the publicly traded company, which also increased its full-year 2023 profit forecast, saying profit-before-tax will now not be less than $130 million. A previous prediction said profit-before-tax would be no less than $125 million.

Were 4imprint to reach at least $1.3 billion in revenue this year, that would represent a 14% increase over last year’s total global sales of $1.14 billion. Total revenue is up 15% through the end of October, the company said.

Also through the first 10 months of 2023, order counts have risen 13% year over year in North America, the company said. While headquartered in London, U.K., 4imprint’s main operations are in Wisconsin and it generates the vast majority of its sales in North America.

Average order values are 1% above 2022 levels, and the Top 40 firm had a cash balance of $95 million at the end of October, executives said.

While #promoproducts industry growth slowed in Q3, especially for the largest distributors, there were positives to report -- including a healthy level-headed optimism about Q4. Stats, graphics, and lots of insights from distributors.https://t.co/omwsy8HS3Q

— Chris Ruvo (@ChrisR_ASI) November 1, 2023

4imprint noted that demand activity and revenue increases relative to 2022 have, as anticipated, moderated as 2023 has gone on.

“This reflects the contrast between the weak comparatives from the first quarter of 2022 and the significantly more challenging year-on-year comparatives arising from April onwards driven by the recovery from the pandemic,” 4imprint executives said in the trading update.

There are some headwinds in play, too, but 4imprint sees them as a potential opportunity.

“In recent weeks we have seen some evidence of softening demand patterns typical of a more cautious macro-economic environment,” the trading update said. “That said, our experience is that a less buoyant economic outlook represents a market share opportunity for 4imprint as our financial strength allows us to keep investing in the business and to take full advantage of a market recovery.”

In the third quarter of 2023, concluded at September’s end, promotional products distributors collectively increased sales 2.4% – the weakest growth rate of any quarter since the recovery from COVID-induced declines began, according to the Distributor Quarterly Sales Survey from ASI Research.

Based on reported 2022 North American promotional product revenue of $1.12 billion, 4imprint ranked first on Counselor’s most recent list of the largest distributors in the industry. CEO Kevin Lyons-Tarr and SVP of Merchandising & Supply Chain Suzanne Worwood also ranked first on Counselor’s recently released 2023 Power 50 list of the industry’s most influential people.