Fossil Group Inc. saw its first-quarter profitability fall less than analysts expected as it battled currency headwinds that took their biggest cut out of European revenues.

In the 13 weeks ended April 4, the Richardson, Tex.-based watch and accessories firm generated net income of $38.1 million, or 75 cents a diluted share, 42.5 percent below the $66.3 million, or $1.22, recorded during the 14-week 2014 period.

The analysts consensus estimate for earnings was 64 cents.

Revenues declined 6.6 percent to $725.1 million from $776.5 million a year ago, with the more recent figure falling beneath the consensus estimate of $732 million.

The company estimated that the impact of the stronger U.S. dollar in the quarter reduced net sales by $45.2 million and EPS by 13 cents.

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In constant currency and with a comparable calendar, the company said sales were up 5 percent overall, with revenues in the Americas up 3 percent, rather than down 4 percent; Europe up 9 percent, rather than down 10 percent, and Asia up 4 percent, rather than down 7 percent.

Watch sales were down 8.2 percent to $551.9 million, leathers down 6.8 percent $92.9 million, jewelry up 11.5 percent to $63 million and other products down 8.5 percent to $17.3 million. In comparable currency, without the calendar change, watch sales were up 3 percent, leathers up 4 percent and jewelry up 30 percent.

“We remain very optimistic about our future, even while experiencing some near-term headwinds,” said Kosta Kartsotis, chief executive officer. “Our numerous strategic advantages position us well to gain long-term market share in our growing industry. We remain committed to our 2015 priorities to invest in our owned brands, develop our digital capabilities and advance our initiatives in connected accessories.”

Fossil projected EPS of between 80 and 91 cents for the second quarter, above the 70 cents expected, on average, by analysts. On an adjusted basis, EPS is expected to land in a range of between $1.18 and $1.29. Stripping out currency fluctuation, sales are seen growing 4 to 6 percent.

Shares ended the trading day up 1.2 percent at $86.46 and climbed an additional 4.4 percent to $90.25 in after-hours trading.

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