Cost cuts help struggling Zale swing to profit

Dallas Despite weak sales, Zale Corp. posted a profit in the fourth quarter, helped by closing stores and cutting costs. The company’s quarterly profit totaled $6.7 million, compared with a year-ago loss of $31.8 million last year. Revenue fell 14% to $582.3 million from $679.4 million last year.

The earnings report comes a day after a Wall Street Journal report that the company has received several proposals that would help its financing, including interest from private-equity firm Apollo Management about buying a stake in the chain. Zale has declined to comment on the report.

The retailer is working with investment banking advisory firm Peter J. Solomon Co. to help it search out financing alternatives.

"Our primary financial focus over the next 90 days is to strengthen our liquidity profile by attracting new capital to the business," said CFO Matt Appel.