Hauser & Wirth's UK subsidiary reported an 87% decline in pretax profit for 2024, falling to $1.6 million from $12.5 million the previous year, as revenue dropped by more than half to $91.4 million. The gallery attributed the downturn primarily to a sharp fall in secondary-market sales, which can fluctuate significantly based on a few high-value transactions. The UK entity represents only a small portion of the gallery's global business, which the founders said remained aligned with the previous year's successful performance. Meanwhile, the gallery's hospitality arm, Artfarm Group, posted a wider pretax loss of $24 million despite a 16% rise in turnover.
The results reflect a broader contraction in the global art market, with the 2025 Art Basel and UBS Art Market Report showing a 12% decline in global art sales to $57.5 billion and a 39% drop in auction lots over $10 million. Major dealers are scaling back, with Pace Gallery closing its Hong Kong space and Almine Rech shuttering its London gallery. Hauser & Wirth's financial struggles underscore the challenges facing even the largest galleries in a market downturn, highlighting the fragility of secondary-market revenue and the risks of diversification into hospitality.