Sotheby's Posts First Quarter Loss and Revenue Decline

NEW YORK—Sotheby's has posted a first quarter loss as well as a decline in revenue, Bloomberg reports. The company, the world's largest publicly traded art and collectibles auctioneer, reported that revenue fell 12 percent to $129.3 million, while overall costs increased 9.7 percent to $147.7 million. The net loss was $12.4 million, 19 cents a share.

CFO William Sheridan noted that in order to compete with Christie's and win consignments, Sotheby's gave sellers part of the commissions it charges buyers, resulting in a decline in profit on auction sales. "We tempered some of our opportunities, which resulted in lower margins," said CEO Bill Ruprecht.

The company, which typically posts a small loss of profit in its first and third quarters and a much larger profit in the second and fourth, when its big sales occur, has announced it will increase its buyers' commissions.