IN BRIEF / Southland

Pacific Sunwear of California Inc. said its fiscal first-quarter operating profit fell 39% to $3.5 million, or 11 cents a share, but met analyst expectations, as chilly spring weather and costs to relocate its distribution center hurt results. The Anaheim-based retailer’s sales rose 22% to $137.7 million in the quarter ended May 6, and sales at stores open at least one year fell 3.3%.

PacSun also said it is comfortable with analysts’ consensus earnings expectations of 26 cents for the second quarter and sees earnings growth of 20% in the second half of the year. It expects to see second-quarter same-store sales in the positive low-single digits. Despite the challenging first quarter, the company said it has taken strides to move stagnant inventory out of its stores and push its girls’ and guys’ shorts and denim pants business to boost sales.

Jeff Klinefelter, retail analyst with U.S. Bancorp Piper Jaffray, said PacSun lost market share to other teen-focused retailers during the quarter because it held on to regular pricing longer. Indeed, Chief Executive Greg Weaver said the company’s lack of promotions in its private-label product assortments was a misstep. Shares of PacSun rose 52 cents to close at $20.50 on Nasdaq.