By Joshua Jamerson

Handbag maker Coach Inc. said its profit climbed in the latest period, helped by same-store sales growth, as the company continued to reap the benefits of its turnaround efforts.

Shares rose 3.1% to $37 in premarket trading.

The results came as Coach has tried to refocus itself as an upscale luxury retailer, following years of overexpansion and heavy discounting that hurt the Coach brand. The company has been reducing how much it sells to department stores, closing underperforming stores and scaling back on promotions in an effort to get customers to pay full price.

Sales at existing stores were up 2% for the September quarter. Analysts expected 2.2% growth, according to a poll of analysts by Consensus Metrix. A year ago, in the September 2015 quarter, same-store sales fell 9.5%.

For the latest period, total sales in North America fell 3% amid the pullback from department stores. But in its brick-and-mortar shops, same-store sales rose 4%. Meanwhile, international sales rose 7%.

Over all, Coach reported a profit of $117.4 million, or 42 cents a share, up from $96.4 million, or 35 cents a share, a year earlier. Excluding certain items, earnings per share rose to 45 cents from 41 cents.

Net sales increased 1% to $1.04 billion, though the company said that in constant currency terms, sales fell 1%. Analysts had expected the company to earn 45 cents a share on $1.07 billion in revenue.

The company also backed its full-year guidance. For the year ending next June, Coach expects earnings to grow by a double-digit percentage and revenue to increase by a percentage in the low-to-mid single digits.

Write to Joshua Jamerson at joshua.jamerson@wsj.com

(END) Dow Jones Newswires

November 01, 2016 08:26 ET (12:26 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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