Blue Nile needs to improve margins and not miss earnings expectations. Lower gold prices may help achieve investor objectives. Analysts are expecting 0.07 cents per share this quarter. Zale ( ZLC), through its subsidiaries, operates as a specialty retailer of fine jewelry. Zale is thinly traded with share volume averaging 242,000 per day, and the company has a market cap of $79 million. Zale is expected to report last fiscal quarter's results before the opening bell May 23. On average, analysts expect a drop of 94 cents in earnings per share compared with last quarter's results of 78 cents. The reporting quarter's mean estimate is for a loss of 16 cents per share. While losing money in the past three out of four quarters, the last quarter was profitable and Zale did manage to beat earnings by a penny. Short interest is much lower with Zale than Blue Nile at 11%, but such a large short interest is decidedly bearish, and the shorts clearly have made the right call up to now. >>To see these stocks in action, visit the 6 Stocks to Play for Lower Gold Prices portfolio on Stockpickr.