NEW YORK (CNN/Money) - Clothing retailer Gap Inc. reported lower earnings and sales Thursday but shares rose after hours when the numbers came out slightly ahead of analysts' estimates and the company raised its full year forecast.

Gap reported earrings of 291 million, or 31 cents per share, for the first quarter of 2005, a 7 percent decline on a year over year basis.

But analysts were looking for earnings of 30 cents per share, according to First Call and Gap (Research) shares rose 2 percent after the bell to $22.20.

The retailer said same-store sales in the quarter fell 4 percent to $3.6 billion.

"Overall, our first-quarter results were disappointing as we were up against record-high earnings from last year," Gap chief executive Paul Pressler said in a statement.

But Gap also raised its 2005 forecast $1.44 to $1.48 per share from a previous $1.41 to $1.45.