Hermes posts annual profits rise

Hermes is developing its global network of stores

French luxury goods firm Hermes saw a 7.3% rise in profits last year, despite the negative effect of the strong euro.

The company, famous for its handbags and silk ties, made 288m euros ($452m) in 2007, aided by a 9m-euro boost from an investment in camera firm Leica.

Sales were also helped by the renovation of its main store in Paris.

Last month, the Hermes' chief executive, Patrick Thomas, said he was optimistic for 2008 and was aiming for sales growth of 10%.