Hermès International recorded a 9 percent increase in net profit to €128.1 million for the first half of 2007. The operating profit rose marginally to €185.8 million because of high marketing expenses, but it was aided by a capital gain of €7.2 million on the disposal of Leica. Exchange rate movements had an unfavorable impact on these results, which would have risen by 20 and 11 percent, respectively, on a currency-neutral basis. As previously reported, total sales grew by only 2.9 percent to €721.1 million during the period, with an 8.2 percent increase in local currencies. Observers criticized the company for posting lower sales increases than other luxury goods groups, particularly in core products such as leathergoods.