By Marie-Louise Gumuchian

MILAN (Reuters) - Safilo's (SFLG.MI: Quote, Profile, Research) net profit fell 36.7 percent in the first quarter, hit by the U.S. dollar's weakness against the euro, but the Italian eyewear maker still confirmed on Tuesday its targets for the year.

"On the basis of the quarterly result, substantially in line with expectations for the first part of the year, and the current visibility on the order book, the objectives for the financial year 2008 are confirmed," it said in a statement.

The eyewear maker behind brands like Armani, Dior and Gucci, expects sales to rise between 4 percent and 5 percent this year at an average euro/U.S. dollar exchange rate for the whole year of 1.47.

At constant exchange rates, it has said sales would rise by 7 percent to 8 percent.

Shares in Safilo, whose fortunes are sometimes seen as a reflection of the luxury market, fell 2.58 percent to 1.80 euros.

In the first quarter, its net profit fell to 13.2 million euros ($20.4 million) and net sales slipped 4.5 percent to 326 million euros.

"The performance of the first quarter 2008 has been influenced by the strong devaluation of the U.S. dollar, which penalised by more than 5 percent all the main lines of the income statement," it said.

At constant exchange rates, sales rose 0.9 percent, it said, adding "positive results" were achieved in the U.S. market, due to good prescription frame sales and the contribution of the Mexican Sunglass Island stores, acquired at the start of 2008.