Hauser & Wirth UK profits plunge 90% as art market slumps

Hauser & Wirth's UK operations suffered a devastating 90% drop in pre-tax profits for 2024, plummeting to just £1.6 million from £12.5 million the previous year, according to Financial Times reporting published Monday. The Swiss mega-gallery's UK revenue also collapsed by more than half, falling from £193 million to £91.4 million, highlighting the severe contraction gripping the global art market.ft+1

The dramatic decline at one of the world's most prominent contemporary art galleries underscores the deepening crisis facing the art industry, as high-end sales evaporate and established dealers shut their doors across major art centers.

Gallery Exodus Accelerates as Market Contracts

Hauser & Wirth's struggles reflect broader industry turmoil that has intensified throughout 2025. The first half of the year witnessed an unprecedented wave of gallery closures, with influential dealers Tim Blum shuttering his namesake gallery after three decades, Adam Lindemann closing Venus Over Manhattan after 14 years, and Olivier Babin ending operations at his rising Clearing gallery.news.artnet+2

"The industry is in a free fall," said Jonathan Siegel, co-owner of Soho Art Materials, whose canvas stretching business dropped from 700-1,000 annually to just 200. "Galleries are closing left and right. They have overextended. Everyone thought the light would never stop shining".news.artnet

The Art Dealers Association of America canceled its popular 2025 Art Show, while fine-art auction sales during the first half of 2025 totaled $4.72 billion, down 8.8% from the same period last year and 40.9% from 2022's peak.artsy+1

Secondary Market Collapse Hits Hauser & Wirth Hard

Hauser & Wirth specifically attributed its UK profit collapse to "lower secondary-market sales"—the resale of works by artists the gallery no longer represents. This segment, which can fluctuate dramatically based on a limited number of high-value transactions, has been particularly vulnerable to the current downturn.heni+1

The gallery, which operates 18 locations globally including spaces on London's Savile Row and in Somerset, emphasized that its UK division represents only "a small element" of its total business. However, the scale of the decline mirrors broader industry data showing a 39% decrease in auction lots selling for over $10 million.nytimes+2

According to the latest Art Basel and UBS Art Market Report, global art sales fell 12% to $57.5 billion in 2024, marking the second consecutive year of decline following the post-pandemic recovery. While transaction volume increased 3%, driven by growth in lower-priced segments, the high-end market that galleries like Hauser & Wirth depend on has contracted sharply.theartmarket.artbasel+2