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.
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.
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