Reputed auction house Sotheby’s reported a profit of $95.3 million in the second quarter of 2008 which was a significant turnaround from its first quarter losses. The profits indicate that despite an economic slow down, the market for fine and decorative art is still thriving.

Sotheby’s is the world’s largest publicly-listed auction house. Sales in the first half of 2008 totaled almost $3 billion which exceeded expectations after the first quarter loss of $12.4 million due to low commission margins. While Sotheby’s second quarter profits amounted to $1.46 a share, its revenues in this period actually fell by 5.6 % to $320.2 million.

Compared to an equivalent period in 2007, the earnings of Sotheby’s declined by 11%. However this was due to the shift of its contemporary art sales in London which earned around $24 million in July 2007. The auction house expects the London auction which occurred in July 2008 to add another $26 million in earnings to the third quarter results of 2008.

The profits earned by Sotheby’s were due to the patronage offered by the super wealthy who remain insulated from fluctuating market conditions. While the regular session of the stock market saw Sotheby’s shares dipping by 2.14% to $ 27.48, after the release of its second quarterly report, its shares rose to $28.25 in post hours trading.

-Kalyani Mookherji