Collective Brands Inc posted a much narrower-than-expected quarterly loss as same-store sales rose the most in more than two years, sending the footwear retailer's shares up 5 percent in trading after the bell.

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For the fourth quarter, Collective Brands, currently reviewing its strategic options, reported a net loss of $41.6 million, or 69 cents a share, compared with a loss of $10.1 million, or 16 cents, a year ago.

Excluding items, the company posted a loss of 61 cents a share.

Analysts were expecting a loss of 82 cents a share, according to Thomson Reuters I/B/E/S.

Sales in the quarter ended Jan. 28 rose 5 percent to $815.9 million, also besting analysts' expectations of $781.2 million.

Same-store sales rose 1.7 percent.

Shares of the Topeka, Kansas-based company were up at $18.17 after the bell. They closed at $17.38 on Tuesday on the New York Stock Exchange.

The stock has risen nearly 70 percent since August when the company said it would review its options and shutter nearly 500 stores.