SOTHEBY’S in New York has just announced their best quarter in the company’s history. Sotheby’s consolidated sales reached a record $3.4 billion in the first half of 2011. For the three and six months to June 30, 2011 net income increased by 48% and 54% to $127.2 million and $129.7 million, respectively, when compared to the prior year. This improvement is principally due to significantly higher auction and private sale commission.
Competitive pressure to win high value consignments resulted in lower commission margins. General and administrative expenses increased $7.9 million, or 24%, in the second quarter and $9.8 million, or 15%, in the first half, largely due to increased consulting fees to develop Sotheby’s strategic initiatives and unfavorable movements in foreign currency exchange rates.