MILAN (Reuters) - Italian luxury shoe and bag maker Tod's (TOD.MI: Quote, Profile, Research) reported a 17.8 percent rise in 2007 net profit to 78.7 million euros ($124 million).

Tod's said in a statement it would propose a dividend of 1.25 euro per share.

Chairman and Chief Executive Diego Della Valle said in the statement that he had "good expectations" for sales and profit this year after "the good start" of Spring collection sales.