Nordstrom — which has put more emphasis on discount stores — reports third-quarter results Thursday. Its shares, which fell more than 3 percent Wednesday, could rally if the company posts even "remotely good" numbers, said trader Guy Adami.
Read MoreHere's why even the luxury retailers are down on Macy's poor guidance
Trader Steve Grasso sees teen retailer American Eagle as a "counter-intuitive" play, as the stock has climbed 13 percent this year. He also sees upside in J.C. Penney, which has jumped more than 30 percent this year as it continues to reorganize.
Trader Brian Kelly added that he would be "very worried" about commercial real estate company Simon Property Group if more retailers struggle.
Long AAPL, AMAT, BAC, BMY, BP, CSX, DIS, DISCA, DKS, FOXA, GE, KKR, KO, MRK, PEP, PFE, PHM he is long calls ABX, BEE, DAL, DOW, EBAY, EMR, FIT, JOY, LM, MRK, PBR, POT, SLV, TJX, UAL, WYNN, XLF He is long puts EWW, FCX, MRO
Steve is Long AAPL, BA, BAC, CC, DD, DIS, DECK, EVGN, FIT, KBH, MJNA, MBLY, MU, OLN, PFE, PHM, T, TWTR, GDX firm is long AMZN, BP, COP, CVX, NE, NEM, OXY, RIG, SHLD kids own EFA, EFG, EWJ, IJR, SPY
Brian Kelly is long BBRY, GLD, Bitcoin, Hong Kong Dollar, US Dollar; he is short Yuan, British Pound, Candaian Dollar, Euro, Yen, EEM, EWC, EWH, EWU, EWG, SPY
Guy Adami is long CELG, EXAS, INTC, Guy Adami's wife, Linda Snow, works at Merck.