Mall-based clothing retailer Pacific Sunwear of California said first-quarter profit dropped 33% on increased costs.

Net income was US$11.9m in the quarter compared to $17.6m last year, while revenue was up 7.1% to $299.9m from $280m.

"Although the quarter was difficult, I'm encouraged with the improvement we achieved in our sales trend in April. In April, we also successfully launched our latest retail concept, One Thousand Steps," said CEO Seth Johnson."