4imprint (asi/197045), the largest distributor by revenue in the North American promotional products industry, says economic disruption from novel coronavirus is decimating its order count.

In a trading update issued Thursday, the London, U.K.-headquartered firm, whose main operations are based in Oshkosh, WI, said order counts began to plummet on March 10. Prior to that, 4imprint’s total orders were up about 13% in 2020 compared to the same time the prior year.

However, over the last three days in particular, 4imprint’s order count is running, on average, at only 40% of what it was during the comparable period in 2019.

“There is no historical precedent in the business for the demand reduction that we are seeing,” Chief Financial Officer David Seekings said in a statement.

David Seekings, CFO, 4imprint

“We are unable to predict how long this lower level of order activity will last, but clearly the effects of COVID-19 will impact revenue and profitability in the current financial year,” Seekings explained. “In the immediate term, we are materially recalibrating our marketing activities and identifying and implementing cost saving initiatives, whilst being carful not to compromise the long-term prospects of the business.”

In the update, 4imprint also noted that it has witnessed substantial recovery of production capacity at factories in China, where some 60% of the products it sells are made – something Counselor has documented as a broader positive occurrence in the promo industry. Still, 4imprint noted that it’s now concerned that coronavirus’ spread in North America and the U.K. will hobble the operations of domestic suppliers.

“We have very strong relationships with our suppliers, and we will continue to work closely with them in the coming days and weeks as the situation evolves,” said Seekings.

For updates on the operational activity of companies in the promo market, please head here.

4imprint generates the vast majority of its revenue in North America. In 2019, the company’s North American sales were nearly $839.3 million – up 17% over 2018. Combining that tally with global sales (the U.K. and Ireland), 4imprint’s total revenue last year was $860.84 million, also about a 17% rise over 2018. Similarly, after-tax profit leapt more than 21% year over year to $42.71 million.