Shares in Hot Topic Inc. gained 5 percent in after-market trading Wednesday after the retail chain announced February store sales declined 2.3 percent, which was a significantly lower dip than analysts expected.

Wall Street had expected the struggling retailer, which specializes in the teen clothing market, would report a sales decline of 4.4 percent, according to Thomson Financial.

The City of Industry-based retailer added that February sales totaled $50.4 million a 1.1 percent increase from the same period a year earlier.

Same-store sales for January fell 3.6 percent while total sales for that month fell 24 percent to $41.2 million.

Shares in hot Topic closed down 1 cent but rose to $5.83 in after-market trading.

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