Hermes, possibily the world’s most luxurious brand, saw a 7.3% rise in profits last year, despite the negative effect of the strong euro.
The company, famous for its handbags such as the Birkin and silk ties, made 288m euros ($452m) in 2007, aided by a 9m-euro boost from an investment in camera firm Leica.
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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%.
Jean-Paul Gaultier, the French designer best known for putting men in skirts and Madonna in a conical bra, has been designing Hermes’ ready-to-wear since 1999. The marriage of opposites surprised the fashion world at the time of announcement, but has since proven to be a highly successful and original partnership.