The troubled economy and weak retail sales notwithstanding, Amazon Inc has reported a 9 percent increase in its fourth-quarter profits.

An exceptional holiday shopping spell for the Seattle-based online retailer yielded a net profit of $225 million, or 52 cents per share, in the fourth quarter - an increase from a year-before net profit of $207 million, or 48 cents per share – which exceeded the analysts’ estimates of 39 cents per share.

Amazon also beat the $6.44 billion expected sales estimates by the analysts; the $6.70 billion sales during the quarter marked an 18 percent increase over $5.67 billion same-quarter earlier-year sales.

The news of Amazon’s enviable fourth-quarter figures amid recession sent its shares soaring 12% in after-hours trading to reach $56.70.

With most retailers hit hard by the reduced spending by consumers, Amazon appears to be an exception. The company reiterated that it would persist with its low-price offers and free shipping deals – a calculated move to attract budget-conscious buyers.

In the first quarter of 2009, Amazon reportedly expects its revenue to be between $4.52 billion and $4.92 billion, with the Wall Street’s estimates being $4.54 billion.

Commenting on Amazon’s outlook for the first quarter, analyst Sandeep Aggarwal, who covers Amazon for Collins Stewart, said: “This was a very, very strong quarter. Amazon clearly showed it can grow materially even though the overall economy is contracting.”