Sales Performance Overview
On a press call this Thursday, Sotheby’s CEO Charles Stewart shared the company’s consolidated sales figures for 2024, revealing a robust total of $6 billion.
This impressive figure not only surpassed its main competitor, Christie’s, which recorded $5.7 billion in sales, but also highlighted a significant 23 percent decline compared to the previous year.
Sotheby’s faced various hurdles in the past year, including workforce reductions in major markets like London and New York.
Additionally, the company encountered challenges after quickly reversing changes to its buyer’s fee structure.
Broader economic factors, such as geopolitical tensions, high interest rates, and the upcoming U.S. presidential elections, contributed to a tumultuous landscape for the auction house.
Despite these challenges, Stewart conveyed a sense of optimism for what lies ahead.
Market Trends and Performance
Looking to the future, Stewart anticipates 2025 will be a transformative year for Sotheby’s, forecasting sales of around $800 million within the first few months—an amount that could potentially set a new record for the historic institution.
While the primary focus of Stewart’s announcement was on 2024, the figures revealed a notable drop in auction sales, plummeting 28 percent to a total of $4.6 billion.
The fine art sector suffered the most, generating only $3.8 billion, which is nearly a third less than the previous year’s figures.
Stewart noted that many “discretionary sellers” held back, exacerbated by a scarcity of large estate offerings, which limited the availability of high-end fine art and luxury items.
Stewart elaborated on the complex factors impacting the market, such as fluctuating interest rates, robust equity markets, and the uncertainty surrounding elections in both the U.S. and Europe, in addition to geopolitical instability in certain areas.
He acknowledged that these issues contributed to a pervasive climate of uncertainty.
During the session, Lisa Dennison, chair of Sotheby’s North and South America, emphasized the persistent demand for premier artworks, citing the significant sale of David Hockney’s *L’Arbois, Sainte-Maxime*, which fetched over $17 million in October.
She highlighted that although the overall volume of lots may have dropped, exceptional pieces continue to generate fierce competition and record-breaking bids.
Future Prospects and Innovations
In a more positive turn, Sotheby’s luxury sales experienced only a modest decline of 4 percent, totaling $2.2 billion.
This steadiness raises hopes as the company prepares for its first international auction in Saudi Arabia next month, a region that is quickly emerging as a luxury goods epicenter.
Stewart is enthusiastic about positioning Sotheby’s as a globally recognized luxury brand that extends beyond the art market.
The auction in Diriyah will coincide with the opening of a new office in the Al Faisaliah Tower in Riyadh.
Stewart expressed excitement about future opportunities, highlighting plans to venture into new markets and attract a fresh wave of collectors keen to explore art and luxury through Sotheby’s.
Although the records for 2024 were sparse, one notable achievement stood out: Sotheby’s reported an impressive 85 percent sell-through rate across all categories, with luxury items achieving an even higher rate of 86 percent.
Interest surged for lots priced over $15 million, and for pieces exceeding $10 million, sales frequently exceeded high estimates, complemented by a rise in the number of bidders per lot compared to the previous year.
One of the standout achievements for Sotheby’s in 2024 was the nearly 20 percent growth of its private sales department, reaching $1.4 billion, marking the second-highest total in the company’s history.
Dennison remarked on the increasing preference for private transactions amid market uncertainty, noting that the momentum in sales is largely driven by blue-chip artists.
These private exhibitions have become increasingly important, with highlights such as the October show “London to Paris,” which focused on high-value works during the busy art fair season in those iconic cities.
David Rothschild, Sotheby’s Senior Specialist in Private Sales, pointed out how the volatility in financial markets has led sellers to pursue greater control over pricing, a trend well-suited to private sales strategies.
He emphasized the innovative selling platforms established in Europe that provide consignors increased flexibility in pricing.
In private sales, iconic artists such as Alberto Giacometti, Claude Monet, Jean-Michel Basquiat, Pablo Picasso, and Andy Warhol have proven consistently successful, excelling both in private transactions and at auctions.
As it moves forward, Sotheby’s holds an optimistic outlook.
Oliver Barker, chair of Sotheby’s Europe, noted a renewed confidence emerging among collectors, especially in light of declining interest rates and the clarity following recent electoral events in the United States.
The future appears promising not only for Sotheby’s but also for the broader art market, cultivating a hopeful environment for collectors and enthusiasts alike.