Luxury brands are raising prices in Japan due to a weakened yen, despite experiencing strong sales growth there, largely driven by tourists taking advantage of lower costs. Major luxury groups such as LVMH, Hermès, Richemont, and Kering reported significant sales declines in China during the second quarter, while Japan saw a 57% increase in luxury sales, fueled by Chinese tourists. The yen’s depreciation, which made luxury goods cheaper, has led to price hikes to offset currency fluctuations. While the surge in Japanese sales is a bright spot for the luxury sector, the strong yen in recent weeks and the shift in spending from China have complicated profitability, as luxury firms try to balance price adjustments without alienating local consumers.