Sotheby’s profit declines as it reduces guarantees

Guarantees were reduced by 30% in the first quarter but the conservative move reduced profits because Sotheby’s still had to compete with Christie’s with other incentives–read: reduced commissions. Here’s the damage:

$18.1m (or 12%) fall in turnover at Sotheby’s for the first three months of 2008, compared with the same period last year. The firm also announced a $12.4m fall in income (profits) for this period; last year its profits rose by $24.3m for the same quarter.

“Aggressive Competition” Hits Sotheby’s Profits (The Art Newspaper)