The second-largest U. S. department-store company, Macy's Inc forecasts higher profits for the coming year than analyst expectations.

The Cincinnati-based company said in a statement yesterday that its profit per share in the year through January 2015 will be $4.40 to $4.50, which is higher than average of 19 analysts' estimates compiled by Bloomberg at $4.36. The department-store chain also said launched a program to cut costs including slashing around 2,500 jobs claiming that it will help save about $100 million a year for the company. The cost cutting plan will include combining its Midwest and North regions, eliminating some merchandise planning and store positions as well as central office and administrative jobs.

Macy's Chief Executive Officer Terry Lundgren has been able to continue profit growth by adding competitively priced exclusive merchandise and allowing lower level managers to tailor assortments to local tastes. The company has also increased online sales by accepting orders and delivering from store inventory.

Macy's rose 5.3 percent to $54.59 in extended trading yesterday after the company announced its forecasts and the cost cutting programme. The shares of the company fell 0.7 percent to $51.84 at the close in New York.