Coach reported better-than-expected profit for its third quarter as its turnaround efforts to reduce discounts on its goods sold in the United States gain increased traction.

The upscale retailer reported net income of $130 million, with earnings per diluted share of $0.46, in the quarter ended April 1, compared to $124 million in the year-ago period. Its results exceeded Wall Street expectations.

Coach also reaffirmed its full-year 2017 profit and revenue forecasts. Its results come as the chain is thought to be considering acquisitions, with the most recently reported target being luxury shoe brand Jimmy Choo.

“Now that Coach is on a clear path to recovery we believe it is right for the company to explore options for future growth, said Neil Saunders, managing director of GlobalData Retail. “Following a failed tilt at Burberry last year, Coach is rumored to have Kate Spade, Jimmy Choo and…