Announcing Q3 results for the period to 31 March, founder and CEO Robert Keane provided an update on the impact of Trump’s controversial tariff regime.
He stated: “Currently the primary impact of tariffs on Cimpress is from raw materials sourcing, particularly from China, as well as the potential for increased supplier costs connected to reciprocal tariffs on other countries.”
Keane praised the “exceptional work” of Cimpress teams in taking swift action to make changes “against a dynamic tariff backdrop”, along with planning for alternative scenarios.
He said Cimpress had been working to mitigate the impact of tariffs on the group’s US customers, but expected promo products, apparel and gifts to face increased input costs.
“We expect to raise prices to at least partially offset these tariff costs and have already implemented pricing changes on some impacted products.
“For these products where price increases are being used, it is not possible to forecast what impact this may have on customer demand,” he noted.
In Q3 revenue at the mass customisation and web-to-print giant nudged up by 1%, or 3% on an organic constant currency basis, to $789.5m (£593.9m).
Operating profit was up $1.3m to $40.5m, but gross margin slipped to 47.2% (2024: 48.2%) due to various factors, including a decline in business card revenues and impairment charges.
The net loss for the quarter increased by $2.8m to $8m.
Its operations include Vista; PrintBrothers and The Print Group (the Upload and Print businesses that includes Tradeprint in the UK); and National Pen.
Regarding the outlook, Keane said: “Despite the current challenges of tariffs and economic uncertainty, over our history, times of adversity have allowed us to extend our industry leadership and take market share.
“That is our expectation in the current environment and we are focused every day on addressing customer needs and leveraging our advantages to do just that.”
Cimpress’ share price fell on the news, and was down just over 8% this week. It was at $39.23 at the time of writing (52-week high: $104.92, low: $35.21). The share price has declined by 44% since the start of the year.
