Sothebys 1Q17 Earnings Call Notes

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Thomas Smith – President and CEO

*The market is starting to show signs of strengthening

“So, what is the state of the market for the art and luxury goods that Sotheby’s sells? In short, the market is starting to show signs of strengthening. The message from our Hong Kong sales in April was that East and Southeast Asia’s buyers were prepared to pay top prices for excellent quality art and jewelry.”

*Purchasing power of wealthiest has grown more than price of art

“In 2006, the 201st wealthiest person on the Forbes 400 would have had to spend 10% of his wealth to purchase the most expensive piece of art sold in auction that year. In 2016, that same number was only a little over 5%. In 2006, the 201st wealthiest person on the Forbes 400 would have had to spend over 70% of his wealth to purchase all of the top 10 pieces of art sold at auction that year. In 2016, that same number was under 40%. In other words, the median member of the Forbes 400 would have seen his personal spending power to purchase art at auction, grow 75% in the past decade alone.”