Richardson-based watch maker Fossil Inc. said Tuesday its first-quarter profit climbed 21 percent, helped by international growth and strong watch and jewelry sales, but fell short of Wall Street expectations.

Fossil also said it expects fiscal 2008 earnings to come in above analysts' estimates.

For the three months ended April 5, earnings rose to $30.2 million, or 43 cents per share, compared with $25 million, or 36 cents per share, in the corresponding quarter last year.

Quarterly revenue rose 17 percent to $356.2 million, from $304.8 million in the year-ago quarter.

Analysts polled by Thomson Financial, on average, predicted net income of 40 cents per share on sales of $348.2 million.

Gross profit margin was helped by a weaker dollar, lower product costs, and higher-margin international sales. This was partially offset by higher freight costs and an increased mix of lower margin mass market and third-party distributor shipments, Fossil said.

Full Year Forecast

Fossil forecast full-year net income between $2.16 and $2.22 per share. Analysts surveyed by Thomson Financial, on average, predict a 2008 profit of $2.15 per share.

The company said it expects sales to rise in the mid-teens percentage. Sales last year totaled $1.43 billion. Analysts expect full year sales of $1.64 billion.

Second Quarter Forecast

For the second quarter, Fossil forecast earnings of 25 cents per share, which includes 4 cents per share in costs related to its direct to consumer expansion. Last year, the company reported second-quarter profit of 21 cents per share.

Revenue is expected to rise 12 percent to 14 percent. The company reported 2007 second-quarter sales of $304.8 million, which would imply revenue of $341.4 million to $347.5 million.

Analysts expect second-quarter net income of 30 cents per share on sales of $352.4 million. Estimates typically exclude one-time items.