Stock Picks

4 ways to play the retail wreck

4 ways to play the retail wreck
VIDEO1:3601:36
4 ways to play the retail wreck

As brick-and-mortar retailers flounder amid weak earnings, the "Fast Money" traders found some hidden value in the sector.

Department stores suffered in a rocky week of revenue reports, with a fund that tracks the industry falling almost 5 percent for the week. Nordstrom, Kohl's and Macy's all saw shares slide.

Customers browse the make-up area at a Sephora USA store inside a J.C. Penney store in Brooklyn, New York.
Guess what? JC Penney is now ahead of the curve

Trader Tim Seymour said that recent apparel retail results only affirm reasons to own shares of home improvement stores like Home Depot and Lowe's, citing pent-up demand as the housing market improves.

While catering to only the female shopper may seem antiquated, stocks like Ulta Salon have outperformed, while Kate Spade looks cheap, trader Steve Grasso said.

Source: Kate Spade Saturday | Facebook

Disclosures

GUY ADAMI

Guy Adami is long CELG, EXAS, GDX, INTC, Guy Adami's wife, Linda Snow, works at Merck.

STEVE GRASSO

Steve is Long BA, CC, DD, DIS, DECK, KBH, MJNA, MU, OLN, PFE, PHM, T, TWTR, GDX firm Long UAL, AMZN kids own EFA, EFG, EWJ, IJR, SPY

BRIAN KELLY

Brian Kelly is long BBRY, Bitcoin, GLD, US Dollar; he is short Australian Dollar, BLK, CS, DB, Euro, EWA, EWH, FRC, Hong Kong Dollar, UBS, Yuan, 5-Year Note Futures

TIM SEYMOUR

Tim Seymour is long AAPL, AVP, BAC, BBRY, CLF, DO, EDC, EWZ, F, FCX, FXI, GM, GOOGL, GRMN, GE, GLNCY, INTC, LQD, MCD, MPEL, NKE, RACE, RAI, RL, SINA, T, TWTR, UA, VALE, VZ, XOM. Tim's firm is long BABA, BIDU, CLF, EWZ, F, HD, KO, MCD, MPEL, NKE, PEP, PF, SAVE, SBUX, SINA, VALE, VIAB, WMT, WEN, YHOO, short HYG, IWM, WYNN