Sharp declines in tourist spending on luxury goods in Japan and Europe are dragging on industry sales, adding challenges for a sector grappling with the end of a multiyear boom. Second quarter sales at LVMH, Prada and Moncler were hit by lower spending from American tourists in Europe and Chinese tourists in Japan. The U.S. dollar has fallen by more than 10% against the euro in H1 2025, diminishing incentives for U.S. travelers to shop in European boutiques. LVMH’s fashion and leather goods division declined 9% organically in Q2, with CFO Cécile Cabanis citing changes in tourist spending patterns as the main reason.