PARIS (Reuters) - French luxury goods group Hermes International (HRMS.PA: Quote, Profile, Research) said 2007 net profit rose 7.3 percent, as unfavourable exchange rates capped its earnings despite disposal gains and a year-end boost to business.

The maker of trademark silks and handbags said net profit rose to 288 million euros ($452.7 million), lifted by an exceptional gain of 9.2 million euros from the disposal of bonds in camera maker Leica (LCAGk.DE: Quote, Profile, Research).

Current operating income rose 3.4 percent to 414.5 million euros on already reported revenue up 7.3 percent to 1.63 billion, after its renovated headquarters store in Paris lifted year-end sales.

Hermes said it would continue to invest in 2008 to develop its retail network and improve its production capacities, but gave no detailed outlook.

Last month, Hermes Chief Executive Patrick Thomas told Reuters he was optimistic about prospects for 2008, targeting sales growth at constant exchange rates of at least 10 percent and saying Hermes sought to maintain its profitability at the same rate as 2007.

Hermes said it would increase its dividend 5 percent to 1 euro a share.

(Reporting by Marie Maitre; Editing by David Holmes)