Sotheby's Releases Preliminary First Quarter Results

Sotheby's released preliminary first quarter 2014 financial results with highlights being a 40% increase in net auction sales, 34% increase in the important Impressionist and Contemporary specialty areas and 81% improvement in pre tax results.

I am sure Sotheby's release the positive early results due to its continued battles with dissent investor Daniel Loeb and his recent investment presentation and quest for additional board seats.

Sotheby's reports

Sotheby’s Reports Preliminary First Quarter 2014 Results

40% Increase in Net Auction Sales, 34% Increase in Impressionist and Contemporary Art sales, and 81% Improvement in Pre-Tax Results Reflect Continued Successful Execution of Strategy

NEW YORK, 23 April 2014 – Sotheby’s (NYSE: BID) today reported preliminary, unaudited financial results for the first quarter ended 31 March 2014.

For the first quarter of 2014, Sotheby’s expects to report that Net Auction Sales have increased by 40% from the prior year to approximately $730 million. This substantial improvement is primarily due to a $113 million, or 34%, increase in sales of Impressionist Art and Contemporary Art over the prior year.  Notably, Sotheby’s record setting Impressionist Art sales in London achieved the highest-ever total for any sales series held anywhere in London. Reflecting this sales growth, Sotheby’s expects to report that pre-tax loss for the first quarter improved by 81% to approximately ($6) million, as compared to Sotheby’s pre-tax loss of ($32) million in the first quarter of 2013.

Due to the seasonal nature of the art auction market, first quarter Net Auction Sales have historically represented only a small proportion of annual Net Auction Sales, resulting in a net loss for the period. As a result, first quarter results are typically not indicative of expected full-year results.

“Sotheby’s growth in sales and improved financial performance demonstrate that we are executing on our strategic plan and are well positioned to further build on the substantial momentum and record results we achieved in 2013,” said Chairman, President and Chief Executive Officer Bill Ruprecht. “We remain focused on driving value for shareholders and clients alike and working to capitalize on Sotheby’s position as the leading global brand providing access to exquisite art, art-related financing, arts education, real estate and retail wine and jewelry.”

Sotheby’s expects to announce final First Quarter 2014 results on or around 7 May.

Source: Sotheby's