Phillips Reports $843 Million in Sales for 2024: The sales recorded by the international auction house of Phillips totaled at $843 million for 2024. Meanwhile, auctions marked a decrease by 14 percent compared to those in 2023. But with the performance in certain categories, there was an outstanding report, and in many aspects, they adjust and cope up according to time changes.
Phillips Sales Report in 2024
In the luxury and high-end art auction market, Phillips sold $843 million worth of art around the world in 2024. Auctions accounted for $721 million of the company’s sales. That’s down 14 percent from last year, when Phillips rang up auction revenue of $840.7 million.
Although the results are lower compared to last year, Phillips nonetheless achieved an 86% sell-through rate by lot across its sales offices in New York, London, Geneva, and Hong Kong. In plainer words, this means nearly 9 in 10 lots offered at auction were sold.
And 80% of the items sold within the auctions sold at prices higher than their respective estimates, so there was still premium being paid for certain works of art by buyers.
Focus on Younger Collectors
Phillips has been working diligently to attract younger bidders for some time. In 2024, for example, roughly 30 percent of bidders and buyers were under the age of 40. Many of those buyers were first-time buyers with Phillips, and nearly one-third of them had never bought anything from the auction house before.
Another strategy used by Phillips is the introduction of new strategies to connect with younger collectors. It has sold lower-priced works of art and even launched a digital platform for sales. All these are part of the company’s broader plan in maintaining an upward trend amidst slowing down traditional auction sales.
Private Sales and Stable Sectors
While auction sales dipped, Phillips managed to generate $121 million from private sales in 2024. This includes art commissions through their digital platform. Private sales have been a growing part of their business model, and Phillips continues to focus on these to balance out slower auction results.
Other categories, such as watches and jewelry, had a stable increase. These are now stable sources of revenue for Phillips. Over the last four years, Phillips has been selling more than $200 million in a year in watches. Sales of design pieces also had a good performance, with a sell-through rate of 90%, indicating high demand for design items.
Difficulties in 2024
These, however, remain challenges for Phillips. The report mentioned that the competition for high-value works of art is rising. With the rise in competition, as more houses bid for the rare pieces, it has been tough for Phillips to achieve profit targets.
Secondly, Phillips is still grappling with a slow 2023. The house is still fighting off the history of being loss-making and struggling with increased competition in sourcing valuable works of art.
Phillips uses loans from the parent company Mercury Trading Group, which is Russian-owned. Such a financial model has raised certain issues, one of which pertains to its future stability when market conditions persist to be unrelenting.
Table: Phillips’ 2024 Sales Breakdown
| Category | 2024 Sales ($ Million) | 2023 Sales ($ Million) | Change |
|---|---|---|---|
| Auction Sales | 721 | 840.7 | -14% |
| Private Sales | 121 | N/A | N/A |
| Watch Sales | Over 200 | Over 200 | Stable |
| Design Sales | N/A | N/A | 90% sell-through |
Navigating the Changing Art Market
Phillips’ performance in 2024 stresses that there is a challenge and opportunity coexisting in the modern auction world. As auction sales were somewhat lower, the house still held high sell-through rates and constant growth in private sales. Increased interest from young buyers and paying heed to new platforms can be the source of hope for growth in the future. However, Phillips needs to keep up with adapting towards a growing more competitive art market.