Costco Wholesale Corporation (COST), the fifth largest general retailer in the U.S., has reported better-than-expected fourth quarter fiscal 2009 results with net income of $374 million or 85 cents per share, compared to $398 million or 90 cents in the year-earlier quarter. The quarterly earnings well surpassed the Zacks Consensus Estimate of 77 cents per share.

For fiscal year 2009, net income was $1.09 billion or $2.47 per share compared to $1.28 billion or $2.89 per share in the previous fiscal year. The year-over-year decrease in the fiscal results was primarily due to the continuing softness in the U.S. economy, higher employee benefit costs and negative impact of foreign currency translation.

Net sales during the quarter totaled $21.89 billion compared to $22.63 billion in the year-ago quarter, while net sales in fiscal 2009 were $69.89 billion compared to $70.98 billion in fiscal 2008. Although both the quarterly and yearly sales declined year over year, the figures were comparatively better than analysts' expectations, suggesting an overall improvement in the weak U.S. retail environment.

Furthermore, early signs of a probable recovery in the retail sector also emanated from the monthly sales data of Costco. For the five-week period ended October 4, 2009, Costco's net sales were $6.85 billion compared to $6.67 billion in the previous year.

Currently, Costco operates 560 warehouses, 407 of which are located in the U.S. and Puerto Rico, 77 in Canada, 32 in Mexico, 21 in the U.K., 9 in Japan, 7 in Korea, 6 in Taiwan and 1 in Australia. The company also operates an e-commerce website called Costco Online. In the remainder of the calendar year 2009, Costco plans to open about six-seven new warehouses, including relocation of existing facilities.