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Sotheby’s managed to navigate a challenging market in 2023, recording total sales of $7.9 billion. This achievement, while slightly below the record-breaking $8 billion of the previous year, demonstrates Sotheby’s resilience and adaptability in the face of financial uncertainties. Charles F. Stewart, Sotheby’s CEO, characterized 2023 as a “more challenging market with much higher financial costs.”
The 2023 total is especially impressive given that it includes a 0.8% decrease from the previous year, when Sotheby’s achieved its highest-ever consolidated sales. Notably, the 2022 figures were boosted by the incorporation of real estate and classic car auctions as part of Sotheby’s luxury offerings.
Fine art auction sales for 2023 reached $4.3 billion, representing a slight reduction from the $4.4 billion in 2022. Conversely, luxury auction sales saw marginal growth, totaling $2.2 billion compared to $2.1 billion the previous year. However, private sales, which are often favored by consignors during economic downturns, experienced a substantial 7.9% increase in both fine art and luxury categories.
Sotheby’s expansion into luxury segments, such as sneakers, sports memorabilia, and trading cards, has proven successful, with luxury auction sales increasing by 4.1% in 2023. In the United States, luxury sales reached $410 million, marking a 25% increase from the previous year. Europe also saw a resurgence in luxury sales, reaching $348 million, the highest level in six years. In Asia, collectors contributed significantly, accounting for nearly 30% of the total value of worldwide luxury sales.
Sebastian Fahey, Sotheby’s Managing Director of Global Fine Art, noted that luxury sales have grown by a remarkable 200% since 2020, highlighting significant potential for further expansion in this sector. However, Fahey emphasized that this growth would not come at the expense of Sotheby’s core fine art sales, which remain integral to the brand’s identity.
A notable trend contributing to Sotheby’s success is the growing influence of Gen X and Millennials in the art market. Gen X accounted for more than 40% of bidders for items priced over $1 million in 2023, marking a generational shift in collecting preferences. For younger collectors, luxury often serves as an entry point into the art world, as Gen X and Millennials constituted 87% of buyers in categories such as handbags, streetwear, and spirits. Importantly, this younger generation is also displaying a strong interest in a wide range of artists, spanning from Magritte to Banksy, further diversifying the art market.
Single-owner collections played a significant role in Sotheby’s financial performance, contributing $1.3 billion in 2023, a 24% increase from the previous year. Six collections exceeded $50 million in sales, while 12 achieved more than $20 million. The Emily Fisher-Landau collection in New York, heavily guaranteed, secured the top spot with sales totaling $427 million during auctions in November and December. Notably, guarantees have become more common in the auction world, particularly for valuable single-owner collections.
Sotheby’s competitive edge became evident as it outperformed its rival, Christie’s, in 2023 sales. Christie’s had projected $5 billion in art and luxury goods sales for the year, a significant 23% less than Sotheby’s total.
Furthermore, Sotheby’s Financial Services reported substantial growth, with lending against art and collector cars expanding in 2023 by over 30%. This diversification of services showcases Sotheby’s commitment to providing comprehensive solutions to its clients.
Asia continued to play a pivotal role in Sotheby’s global strategy, contributing $1 billion in sales for the third consecutive year. Market hubs across the region, with Hong Kong at the forefront, continued to thrive despite speculations of waning interest from Mainland China. Sotheby’s solidified its commitment to Asia by announcing the launch of Sotheby’s Maison, a new exhibition space, in the heart of Hong Kong in the second half of 2024.
