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Hermes boss on luxury company's future

15 May 2012 Last updated at 00:42 BST

Hermes, one of the world's best regarded luxury companies, has warned its sales may drop if the European currency crisis continues.

Last year the 175-year-old luxury handbag maker saw profits rise 41%, but its owners know it is not immune to global economic pressures.

The family-run company recently rebuffed a hostile take-over attempt by LVMH, citing its love of craftsmanship over profit as the reason for its resistance.

The BBC's Jeremy Howell spoke to the firm's chief operating officer Axel Dumas about the company's heritage and its chance of survival in the cut-throat luxury goods sector.