Zale Corp. reported stronger-than-expected profit in its fiscal second quarter, performance that could support the struggling jeweler attract investment to shore up its business.

On Tuesday, shares in Zale registered above 9% rise, which surpassed analysts' expectations on a report that U. S. private equity firm Apollo Management LP might take a stake in the company, with plans to insert its own management team.

Earlier this year, the company forced out its Chief Executive and two other top executives after rival Signet Jewelers Ltd.'s holiday results outshone Zale's, although Signet has been outperforming Zale throughout the recession.

The company would majorly concentrate on attracting new capital to the business, quoted Chief Financial Officer Matt Appel in a statement.

Second quarter sales at its stores open a year fell 11.2 percent which included the Christmas shopping period as well. Rival jewelry chains such as those owned by Signet posted a rise in the same period.

"Our direct competitors have demonstrated that the market for mid-tier jewelers has stabilized", said interim Chief Executive Theo Killion in a statement, adding that Zale would focus on its diamond business.