4imprint Group (LSE:FOUR), the direct marketer of promotional products, said it now expects full-year 2026 revenue and earnings to come in above the current range of analysts' forecasts, with revenue slightly above 2025's $1.35bn and adjusted pre-tax profit of approximately $130m.
The upgrade came alongside half-year results showing revenue of $666.4m for the 26 weeks to 27 June, up 1% from $659.4m a year earlier.
Adjusted pre-tax profit fell 12% to $64.8m, as gross margin slipped to 31.5% from 32.8% due to higher tariff-related supplier costs, only partly offset by price increases.
Reported profit before tax dropped 19% to $59.6m, with reported basic earnings per share down 21% at 155.1c.
New customer orders fell 7% year-on-year to 202,000, though the decline narrowed through the period, from a 9% drop in the first quarter to 5% in the second.
Cash and bank deposits stood at $136.9m at period end, up from $102.3m a year earlier, after paying $45.2m in 2025 final dividends during the half.
The board declared an interim dividend of 80.0c per share, unchanged from last year.
"The resilience and cash-generative nature of the business model is evident, and the Board remains confident in the Group's strategy, competitive position and long-term growth opportunity", said chairman Paul Forman.
News Intelligence what this means for the company
4imprint lifted full-year 2026 guidance despite a 12% drop in adjusted pre-tax profit to $64.8m in the first half, driven by tariff-related margin compression that price increases only partly offset. The upgrade signals management confidence that revenue growth and operational leverage will overcome near-term cost headwinds, and the company's cash position strengthened to $136.9m even after paying $45.2m in dividends.
The guidance raise on a backdrop of falling profits and shrinking margins is a bet that tariff costs will stabilize or that pricing power will improve. New customer orders fell 7% year-on-year, though the decline is decelerating; if that trend reverses, the company's cash-generative model could deliver on the upgraded outlook. If tariffs persist and customer acquisition continues to weaken, the margin squeeze could prove structural rather than cyclical.
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