NEW YORK — Coach said strengthening business in North American stores during the holidays helped lift its second-quarter profit by 11 percent.

The luxury handbag maker has introduced more under $300 handbags to spur sales as luxury retailers feel the effects of the weak economy.

Coach said today its profit rose to nearly $241 million, or 75 cents per share, during the crucial holiday quarter. That's up from $216.9 million, or 67 cents per share, a year ago.

The company said revenue rose 12 percent to $1.07 billion as sales in stores open at least a year — a key measure of retail health — rose 3.2 percent in North America.

Analysts were looking for earnings of 72 cents a share on revenue of $1.02 billion.