IG Design is contemplating the sale of its Americas segment following a 9 percent decline in group revenue year-on-year for the fiscal year ending in March. This consideration arises in light of President Trump’s tariffs, which have significantly affected the company’s operations.

The leading manufacturer of greeting cards, gift bags, and wrapping paper reported a 12 percent drop in revenue for its DG Americas division, which operated at a loss last year.

Already navigating a competitive retail landscape in the United States, the company faces added challenges due to the imposition of tariffs. About 60 percent of IG Design’s revenue comes from the U.S. market, with over half of DG Americas’ products sourced from China—where tariffs as high as 145 percent have been enforced.

The company noted a decline in customer commitment and a widespread hesitation among retailers to absorb the full impact of these tariffs. Consequently, IG Design is exploring a range of strategic options, including potential divestiture of the Americas division.

An announcement regarding this matter is expected ahead of the full-year results scheduled for June.

Stewart Gilliland, chairman of IG Design, commented, “In recent years, our efforts to revitalize DG Americas have been hindered by various external challenges. We believe that taking strategic measures is necessary to optimize shareholder value and ensure more consistent performance in the future.”

The news of a possible sale has been positively received by the market, reflected in an 8.5p rise, or 16.9 percent, in the company’s share price, closing at 58p.

In its overall forecast, IG Design anticipates reporting an adjusted profit before tax of around $1 million, consistent with earlier guidance provided.

Meanwhile, the company’s International division, which includes the UK, continental Europe, Far East, and Australia, experienced a slightly more significant than expected 3 percent decrease in sales last year.

Despite this, IG Design expects the International division to generate profits aligned with projections and remains optimistic about its outlook in the upcoming years.