After Macy's outlined a cost-cutting plan Wednesday, some "Fast Money" traders felt its stock might break out of a recent rut.
The department store chain announced it will cut thousands of jobs as part of a restructuring expected to reduce expenses by about $400 million annually, starting this year. Macy's shares initially slid in extended trading but reversed course to rise about 2 percent from its closing price.
Trader Karen Finerman bought Macy's on Wednesday. She said the stock price "reflects a lot of bad news already," as it has fallen 44 percent in the last 12 months.
The selling was largely fueled by sluggish earnings and sales in 2015, which Macy's called "disappointing" on Wednesday. The company also said its comparable sales fell 4.7 percent in November and December combined on an owned plus licensed basis.
If Macy's opens Thursday nears its after-hours price, it should continue to rise from there, said trader Guy Adami.
"You do not fade this rally. I think it goes higher here," he said.
While he noted that he wouldn't bet against the stock, trader Brian Kelly contended there are "more exciting things to do than buy Macy's."
Trader Steve Grasso would instead look to Deckers, another battered name in the retail space. He owns the stock, which has fallen nearly 50 percent in the last year.
"Maybe it starts to firm up," he said.
Disclosures:
Steve Grasso
Steve is Long AAPL, BA, BAC, CC, DD, DIS, DECK, EVGN, KBH, MJNA, MBLY, MU, OLN, PFE, PHM, T, TWTR, GDX firm is long MCD kids own EFA, EFG, EWJ, IJR, SPY
Brian Kelly
Brian Kelly is long BBRY, Bitcoin, GDX, GLD, Hong Kong Dollar, TLT, US Dollar; he is short British Pound, Euro, Yen, Yuan, Canadian Dollar, GSG, EEM, EWC, EWH, KRE, SPY
Guy Adami
Guy Adami is long CELG, EXAS, GDX, INTC, Guy Adami's wife, Linda Snow, works at Merck.
Karen Finerman
Karen is long BAC, C, FL, GOOG, GOOGL, JPM, KORS, KORS call spreads, M, SEDG, URI, she is short SPY, Her firm is long ANTM, AAPL, BAC, C, FL, FL calls, GOOG, GOOGL, JPM, KORS, LYV, M, MA, MOH, PLCE, URI, URI long puts, WFM, her firm is short IWM, MDY, SPY. Karen Finerman is on the board of GrafTech International.