Top 40 promotional products distributor 4imprint (asi/197045) reported Tuesday, March 16, that its 2020 global full-year sales declined 35% compared to 2019, falling to $560.04 million.

The London, U.K.-headquartered firm said that sales in North America, where it generates most of its business, fell more than 34% year over year – from $839.28 million in 2019 to $549.87 million in 2020. Sales in the United Kingdom and Ireland fared worse, dropping 53% to $10.17 million.

Paul Moody, 4imprint

Total profit before tax was $3.84 million, down 93%. After taxation, profit for 2020 was $3.09 million, a precipitous drop from the prior year’s profit of $42.7 million. Basic earnings per share were 11.03 cents, while diluted earnings per share were 11 cents, which were both declines of nearly 93%.

Executives for 4imprint, which has operated a market-disrupting e-commerce business model that fueled the company’s rise to becoming promo’s largest distributor based on 2019 North American promotional products revenue, said the sales declines were a direct result of demand decreasing drastically amid societal shutdowns and related economic fallout resulting from the COVID-19 pandemic.

At a point during the initial wave of the coronavirus in spring 2020, 4imprint’s order counts were down more than 80%.

The company, which has its main operational center in Oshkosh, WI, noted that sales improved as 2020 went on.

4imprint “has seen an encouraging recovery since the initial shock of COVID-19 in the first half of the year,” said company Chairman Paul Moody. “We look forward to the beneficial effect that vaccine programs may bring to the economy. The fourth quarter of 2020 was relatively robust, enhanced by seasonal apparel and year-end gifting.”

ASI research shows that total promo distributors’ sales declined year over year, on average, in every quarter of 2020. The declines came after more than a decade of consistent year-over-year increases.

2021 was off to a bumpy start for 4imprint, with order counts in January and February down about 35% compared 2019 levels. In the last three weeks, momentum has picked up some, with order counts off about 30% compared to the same period in 2019, according to 4imprint. Executives noted that 4imprint has no debt, adding that the firm carries a cash balance of $39.77 million.

Overall, North American promotional products distributors’ sales declined, on average, by 19.8% in 2020. The drop would have been even more precipitous had many distributors not pivoted to selling personal protective equipment (PPE), a category that generated billions of dollars in revenue for the promo industry. 4imprint has reported to ASI Media that it did not sell any blank PPE in 2020. The company’s website currently has brandable face masks, hand sanitizers and touchless tools for sale.

The 4imprint board and executives are “proud of the resilience and flexibility demonstrated by the group’s people and business operations,” said Moody. “Decisions have been made and actions taken consistent with 4imprint’s purpose and culture and with a view to long-term health of the business. The group is financially strong and very well placed to capitalize on the opportunities arising in recovering markets.”