August 30 - Zale Corp will sell a line of diamond jewelry under entertainer Jessica Simpson's name, its second celebrity deal this month, as the chain's fortunes continue to improve.

Zale store in Michigan

The rings, earrings, pendants and bracelets in the deal will be part of the Jessica Simpson Collection, which includes perfumes, clothes and shoes, Zale said on Tuesday. The jewelry will be for sale only at Zale's chains, which includes Zales in the United States and Peoples Jewellers in Canada, beginning in October.

Earlier this month, Zale said it would exclusively sell a line of diamond engagement rings by designer Vera Wang.

Zale, which caters to middle- and lower-income shoppers, struggled with liquidity problems during the recession, forcing it to pull back on advertising and leading to market share loss. But its sales have improved sharply this year.

Zale is scheduled to report quarterly earnings on Wednesday.

(Reporting by Phil Wahba; editing by John Wallace)