Shares in discount retailer 99 Cents Only Stores rose more than 2 percent Monday after the company reported that it had narrowed its fourth quarter loss on a rise in same-store sales.

99 Cents Only reported a fourth quarter loss of $1 million (-1 cent per share), a 37 percent improvement on a loss of $1.6 million (-2 cents) for the same period a year earlier. The company said the results included a pretax charge of $1.3 million for the expensing of stock options.

Revenue for the City of Commerce-based retailer rose 9 percent to $278 million due mainly to a jump in sales at both retail and bargain wholesale divisions.

The company added that same-store sales grew 2.9 percent for the quarter.

For the year, net income dropped 15 percent to $9.8 million (14 cents per share), while sales climbed 8 percent to $1.1 billion.

Shares in 99 Cents Only rose 30 cents, or 2.3 percent, to $13.41 in afternoon trading Monday on the New York Stock Exchange.