Kate Spade investors just bagged a major profit.

Shares of the trendy handbag brand surged as much as 21 percent Thursday after the company raised its full-year sales forecast on better-than-expected quarterly results.

In an upbeat report that contrasted with recent disappointments from rivals Coach and Michael Kors, Kate Spade said fiscal third-quarter sales soared 30 percent to $250.4 million.

Solid demand in North America for the label’s higher-priced Kate Spade New York line helped boost gross margins to 62.8 percent of sales, up 1.4 percentage points.

Still, the company said it expects margins to fall by about 1¹/₂ points this year. Chief Executive Craig Leavitt cited a “volatile promotional landscape” that’s expected during the holidays.

Kate Spade’s net loss narrowed to $9.1 million, or 7 cents a share, in the quarter ended Oct. 4 from $16.9 million, or 14 cents, a year earlier.

Shares closed Thursday at $30.96, up 18 percent.