![]() ![]() Let’s look at how.ĬFO Michael Goss made it clear in the conference call remarks last week that although compensation and expenses are up at Sotheby’s-the firm talks a lot about its plans to continue to invest in digital expansion but the truth is they seem to have as much money earmarked for real estate upgrades-the only publicly-traded auction house was able to increase earnings due to increased private sales, more auction sales but also tax advantages coming from being a US corporation where a huge corporate tax cut has just been passed and Goss’s clever use of capital to reduce interest costs in the financial services arm.ĭeeper in the annual report, we also learn that Sotheby’s was able to generate more revenue by selling down its inventory and making good guarantee deals that added to income. What are some of those initiatives bearing fruit? Why private sales, a mainstay of Sotheby’s business for decades, particularly in the years after the global financial crisis.Īll of the fruit harvested in Sotheby’s annual report, which resulted in a 60% increase in income over the previous year, comes from Sotheby’s traditional businesses. Some of those initiatives are starting to bear fruit.” “This is an old brand that’s bringing a lot of new business practices. ![]() “There’s more optimism,” David Schick, the director of research and lead luxury analyst at Consumer Edge Research, said. Unfortunately for the readers of the New York Times, a veteran stock analyst who has followed Sotheby’s for years, doesn’t seem to know the difference between the two mandates: On the one hand, he needs to project the company into a new broader-based suite of businesses on the other, he needs to maximize the value generated from the business where it currently makes all of its money. Sotheby’s CEO, Tad Smith, has what might be called a dual mandate. Sotheby’s released its 2017 earnings last week with solid improvements that show the management team, especially Sotheby’s new CFO Michael Goss, are making the most of a number of subtle advantages. Feel free to subscribe and cancel before you are billed. Monthly subscriptions begin with the first month free. This recap of Sotheby’s 2017 annual report is available to AMMpro subscribers. ![]()
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