Costco Wholesale Corporation (NDAQ:COST) shares rallied more than ten percent today after the company announced stronger-than-expected fourth quarter earnings in a 8K filing with the SEC. Shareholders were cautious going into this quarters earnings after a disappointing hiccup in August; however, it appears that the bulk retailer has fully recovered this quarter.

Costco announced a 4.7% increase in net income from 75 cents per share last year to 83 cents per share this year. Meanwhile, this quarter's same-store sales - a key measure in retailing - rose five percent. The largest gain was seen internationally where the company saw a nine percent gain.

Interestingly, the latest quarter's results also included an eight cent charge reflecting a change from monthly membership revenues to daily membership revenues used for accounting purposes. This makes the jump in revenue even more impressive.

Costco's success took many investors by surprise given last quarter's dismal 2% same-store sales and the losses reported by many others in the industry including Target stores. The company has also surprised analysts in terms of same-store sales in May, June and July.

In the end, Costco continues to outperform despite a troubling economic environment. Whether or not this continues remains to be seen, but this is definitely a stock worth watching!

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