Costco Wholesale Corporation reported sales results for the month of October and first nine weeks ended November 1, 2009. For the month, the company's net sales were $5.68 billion, an increase of 7% from $5.30 billion in the same four-week period last year. For the first nine weeks, the company reported net sales of $12.53 billion, an increase of 5% from $11.97 billion during the similar period last year.

Costco Wholesale Corporation, Oct 2009 Sales/Trading Statement Call, Nov-05-2009

Farouk Systems filed a lawsuit against Costco Wholesale Corporation, alleging that it improperly sells the hairstyling tools, including counterfeit ones. In the lawsuit, filed in state district court, Farouk Systems alleges that the Issaquah, Wash.-based wholesale club is selling the flat irons for as little as $59.99, whereas they cost at least $100 in salons. The company describes its business model, saying it sells to authorized distributors, which in turn sell the tools and Farouk's BioSilk-brand hair-care products to salons. It prohibits its distributors from selling to large retailers or wholesale clubs to avoid tarnishing its reputation. In the lawsuit, Farouk's lawyers said sometimes Chi products find their way to stores through a diverted market, or through improper distribution channels. And these products are more likely to be counter-feit products. Farouk's lawsuit claims it found instances of Costco selling fake ceramic hairstyling irons in Texas and California.