Clothing retailer Cato Corp. saw its shares rise by more than 4 percent after it reported second-quarter revenue that beat Wall Street expectations.

The Charlotte-based company reported a net loss of $881,000, or 3 cents per share, compared to net income of $15.9 million, or 57 cents per share, in the second quarter. Analysts were expecting the company to earn 8 cents per share.

Revenue for the quarter was $205 million, down 13.6 percent from the $236.7 million in revenue reported in the second quarter of 2016. Analysts were expecting revenue of $199.1 million.

“Negative sales trends continue to put severe pressure on merchandise margins and profitability as we continue to work through our merchandise missteps,” stated Chief Executive Officer John Cato in a statement.

Cato’s shares rose 62 cents, of 4.7 percent, to $13.69 in Friday afternoon trading.

Same-store sales — or sales in stores open at least a year — for the quarter decreased 14 percent compared to last year.

During the second quarter, the company opened two stores and relocated one store.

Cato now expects to open six new stores during 2017, down from its last estimate of 13 stores due to the “economics of opening stores is not as feasible with current sales trends,” it said.

As of July 29, Cato operated 1,374 stores in 33 states, compared to 1,373 stores in 33 states as of July 30, 2016.