May 21 Reuters Macy39;s raised its profit forecast for the year on Tuesday, as its new CEO39;s turnaround plan helped to shield the department store chain from falling sales due to a cautious consumer.

Shares of the company were up 5 in early trading after it beat estimates for firstquarter profit.

Under CEO Tony Spring, who took charge in February, Macy39;s has outlined a threeyear investment and turnaround plan to save 100 million in costs this year by shuttering about 150 stores through 2026.

Macy39;s said on Tuesday it expects its fullyear adjusted earnings in the range of 2.55 to 2.90 per share. It had earlier forecast earnings of 2.45 to 2.85 per share.

The company is opening 15 locations for its Bloomingdale39;s nameplate and at least 30 new Bluemercury cosmetics stores. Both chains have outperformed many of its Macy39;s department store locations.

I39;m kind of impressed with Macy39;s hanging in here and giving good guidance. So it remains to be seen if it can come through, said Don Nesbitt, senior portfolio manager at Fm Investments, which holds a stake in Macy39;s.

The department store chain is in buyout talks with activist investor Arkhouse Management in a deal valuing it at 6.6 billion. Last month, Macy39;s added two of Arkhouse39;s nominees to its board after the investor nominated nine directorcandidates to the company39;s board in February.

Although the company39;s firstquarter selling, general and administrative expenses fell to 1.9 billion, a 39…