Michael Kors Holdings announced its financial results for the fourth quarter and fiscal year ended March 28, 2015. Total revenue increased 17.8% to $1.1 billion from $917.5 million.
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On a constant currency basis, total revenue increased 23.3%. Retail net sales increased 14.9% to $469.4 million driven by 121 net new store openings since the end of the fourth quarter of fiscal 2014 and e-commerce sales from the recently launched U.S. e-commerce site, partially offset by a 5.8% decrease in comparable store sales.
On a constant currency basis, retail net sales grew 21.1%, and comparable store sales decreased 1.7%. Wholesale net sales increased 20.4% to $570.4 million and on a constant currency basis, wholesale net sales grew 25.8%. Licensing revenue increased 16.5% to $41.3 million.
Total revenue in North America increased 13.7% to $840.5 million, with a 6.7% decrease in comparable store sales. On a constant currency basis, revenue in North America grew 14.3%, with a 5.8% decrease in comparable store sales.
European revenue grew 33.5% to $219.8 million, with comparable store sales decreasing 5.6%. On a constant currency basis, revenue in Europe grew 59.5%, with an 11.0% increase in comparable store sales. Revenue in Japan increased 42.7% to $19.2 million, with comparable store sales growth of 12.4%. On a constant currency basis, revenue in Japan grew 65.0%, with a 30.0% increase in comparable store sales.
Gross profit increased 14.8% to $630.8 million, and as a percentage of total revenue was 58.4%. Gross profit margin was reduced by approximately 30 basis points due to the change in foreign currency exchange rates. This compares to 59.9% in the fourth quarter of fiscal 2014.
Income from operations was $256.2 million, or 23.7% as a percentage of total revenue. This compares to $245.9 million, or 26.8% as a percentage of total revenue, for the fourth quarter of fiscal 2014.
Net income was $182.6 million, or $0.90 per diluted share, based on a 29.4% tax rate and 203.2 million weighted average diluted shares outstanding, which included an unfavorable impact related to foreign currency exchange rates of approximately $0.06 per share.
Net income for the fourth quarter of fiscal 2014 was $161.0 million, or $0.78 per diluted share, based on a 34.6% tax rate and 207.0 million weighted average diluted shares outstanding.
At March 28, 2015, the company operated 526 retail stores, including concessions, compared to 405 retail stores, including concessions, at the end of the same prior-year period.
The company had 202 additional retail stores, including concessions, operated through licensing partners. Including licensed locations, there were 728 Michael Kors stores worldwide at the end of the fourth quarter of fiscal 2015. ■