Hot Topic Inc. outperformed analyst expectations even as revenue fell in the third quarter.

After the Wednesday markets closed, the City of Industry operator of the Hot Topic and Torrid mall boutiques reported third-quarter net income of $3.1 million (7 cents per share), compared with $390,000 (1 cents) in the same period a year earlier. The year-earlier quarter included a $3 million impairment charge related to the company’s money-losing ShockHound music site.

Sales fell 4 percent to less than $176 million, with same-store sales down 1.6 percent.

Analysts surveyed by Thomson Reuters on average expected a per-share loss of 7 cents on revenue of $179 million.

Before the announcement, shares closed down 23 cents, or 3.4 percent, to $6.52, then rose 3.5 percent in afterhours trading