The “Fast Money” traders discussed retail stocks on Friday, as investors prepare for the sector’s wave of earnings next week.

Trader Steve Grasso said he likes Macy’s and Kohl’s because the stocks are oversold and he expects for them to move higher.

Trader Guy Adami said he likes Nordstrom as a stock to short after they report. He said the company’s improving margins and report of less inventory in their last quarter will help it rally into earnings.

Shares of Nordstrom closed at 49.01 on Friday and are up over 11 percent in the last 3 months.

Disclosures:

Tim Seymour is long ABX, AAPL, APC, AVP, BAC, BBRY, C, CLF, CVX, DO, DVYE, EDC, EWN, EWZ, F, FB, FCX, FXI, GM, GOOGL,…