What happened Shares of Fossil Group (NASDAQ: FOSL) rose 13% Thursday after the watchmaker showed off progress toward its turnaround in its first-quarter earnings report. So what Revenue in the period fell 18% (15% in constant currency) to $465.3 million, as timepieces have become less necessary in the smartphone era. Nonetheless, that result topped estimates of $456.1 million. The company said comparable retail sales fell 9% in the quarter, but e-commerce sales continued to grow. Image source: Fossil. The company experienced significant revenue declines in its three product categories -- watches, leather, and jewelry -- and in both the Americas and Europe. However, in Asia, constant-currency revenue rose 4%, with solid growth in China and India. Gross margin increased by 280 basis points, a promising sign, to 53.3%; this was due to a cutback on sales in the off-price channel, and a favorable mix shift to higher-margin sales in Asia. Adjusted loss per share improved from a loss of $0.64 to one of $0.42, beating expectations for a loss of $0.60 per share. CEO Kosta Kartsotis said: "We began fiscal 2019 reporting sales and earnings that exceeded our expectations. Given the ongoing disruptions in our category, we continue to plan our business conservatively but are operating with a sense of urgency to transform our sales channels and to increase product innovation across our categories." Now what Looking ahead, the company sees revenue declining between 7% and 12% for the full year. It also expects pre-tax income of $30 million to $75 million. While the continuing declines in revenue are troubling, investors are learning to accept them as the company copes with a struggling brick-and-mortar channel and a watch market in transition. However, Fossil seems to be making progress in its turnaround efforts as it moves toward wearables and e-commerce. Growth in China and India also shows that the brand isn't struggling everywhere, and the improvement in gross margin is a positive sign for the bottom line. The stock is unlikely to return to its previous heights, but Fossil seems to be moving in the right direction for now. 10 stocks we like better than Fossil GroupWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Fossil Group wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of March 1, 2019Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source