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million up from $1013.4 million in 2006. Comp store sales were up 4.4% overall with an 8.9% increase in retail stores and a 2.3% decline in outlet stores. Direct cheap Michael Kors Bedford Bowling Medium Red Satchels sales for the year were up 8.4%. In our retail stores, we saw per square foot sales increase to $266 from $243 in 2006. Total retail stores square footage at year end was 1.8 million versus 1.9 million square feet at the end of 2006. Outlet stores per square foot sales decreased to $275 from $285 in 2006. Total outlet square foot was roughly flat cheap Michael Kors Glitter Large Gold cheap Michael Kors Fluorescence Large Green Satchels Satchels at 0.9 million square feet. Gross margin was 358.5 million for the year, up $5 million cheap Michael Kors Stockard Shoulder Medium Brown Satchels from 2006. Gross margin rate for the year declined 80 basis points to 36.2% versus 37% cheap Michael Kors Stockard Shoulder Medium Black Satchels in 2006. The decline in the gross margin percentage versus the prior year was due primarily to an 80 basis point decrease related to the cost of our Customer Loyalty Program and a 70 basis point decrease driven in part by higher levels of inventory markdowns. These decreases were partially offset by a 70 basis point improvement to gross margin resulting from a decrease in our occupancy cost as a percentage of net merchandized sales.
Operating loss for fiscal year 2007 declined to $28.4 million from a loss of $118.6 million for fiscal 2006. The 2006 results included a $117.6 million impairment charge rela
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