Sotheby's Loss Narrows as Revenue Jumps 46%

Sotheby's on Monday posted stronger-than-expected results and a loss that narrowed compared with the same period a year ago, boosted by inventory sales and the performance of its finance segment.

The company said, however, that while net auction sales increased by 15% to $48 million during the quarter because of the favorable scheduling of a contemporary art sale, commission revenues decreased mostly due to weaker sales in higher-margin categories such as old master paintings, Asian art, and jewelry.

Finance revenue rose to $12.9 million from $8.9 million, while inventory sales jumped to $53.2 million from $6.3 million.

Overall, the company reported a loss of $17.9 million, or 26 cents a share, compared with a year-earlier loss of $27.7 million, or 40 cents a share.

Revenue jumped 46% to $138 million.

Analysts surveyed by Thomson Reuters forecast a loss of 27 cents a share on revenue of $111 million.

The venerable auction house has had a roller-coaster few years, welcoming Tad Smith as its new chief executive in March amid increasing clamor from activist shareholders calling for a leaner, more profitable business.

Write to Ezequiel Minaya at [e-mail]

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November 09, 2015 09:35 ET (14:35 GMT)

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