Core Insights - The luxury goods industry is facing significant challenges due to a sharp decline in spending by tourists from Japan and Europe, impacting sales for major companies like LVMH, Prada, and Moncler [1] Industry Summary - The luxury sector is struggling to cope with the end of a boom period and the effects of U.S. tariffs, exacerbated by reduced consumer spending from tourists [1] - Sales for LVMH, Prada, and Moncler in the second quarter were negatively affected by decreased consumption from tourists in Europe and Japan [1] Economic Factors - Last year, a weak yen led to an influx of consumers in Japan purchasing luxury items, boosting sales during a period of declining demand [1] - The strong U.S. dollar previously enhanced American tourists' purchasing power abroad, particularly in European luxury stores, but this advantage has dissipated with the yen's recovery and the dollar's depreciation [1] - LVMH's CFO, Jean-Jacques Guiony, indicated that changes in tourist spending patterns were a primary reason for a 9% organic decline in sales in its key fashion and leather goods segment during the second quarter [1]