Shares of Bebe Stores (NASDAQ:BEBE) were up nearly 4% in after-hours trading after the company's fourth-quarter earnings came in stronger than expected, driven by higher comparable store sales and less markdown activity.

The women’s apparel company posted net income of $2 million, or 2 cents a share, compared with a loss of $323,000, in the same quarter last year.

The results were better than average analyst estimates of 1 cent a share, according to a Thomson Reuters poll.

Revenue for the Brisbane, CA-based company was $127.4 million, down 2.1% from $130.2 million a year ago. 

Earnings were boosted by higher comparable store sales, up 3.4% compared with a 29.6% decline the prior year, and by less markdown activity and improved initial mark-ups.

For the full-year, the company saw a 15.6% sales improvement, though it posted a 17.1% decrease in comparable store sales, which is less of loss than last year.

Also for the full-year the company posted net loss of $5.2 million compared with a profit of $12.6 million the prior year.

Shares of Bebe climbed in after-hours trading, up 3.57% to $5.80.