Hermès International has reported an 8.7 percent increase in annual net earnings to €268.4 million for 2006, thanks in part to its disposal of Leica. As previously reported, the group’s consolidated sales grew by 6.1 percent to €1.5 billion, with a strong boost in the 4th quarter. The company plans to spend €150 million this year for the expansion of its production facilities and its retail network.