Shares of Nordstrom Inc. (JWN) rose more than 7% on Monday, amid strength in the retail sector, after an analyst said it's "time to buy" the stock on positive retail trends, chances of improved sales in September and a recent pullback in its shares.

Buckingham Research Group's David Glick raised the high-end clothing retailer's stock-investment rating to accumulate from neutral, following steadily improving same-store sales trends in the last few months.

In a note to clients, Glick said he expects Nordstrom to have further improvements in September followed by significantly easier comparisons in October and the fourth quarter, which should have strong inventory and expense management.

In recent trading, Nordstrom shares rose 7% to $30.98, erasing last week's declines. The stock hit an intraday high of $31.04 and has risen 64% in the last three months as most department stores have strengthened on improved consumer confidence.

From early July to August, the company's stock rallied 65% after its June and July same-store sales declined far less than Wall Street expected. Glick said although he missed the stock's big run in July, he now advises investors to capitalize on the stock's recent pullback from its Sept. 22 high of $32.81.

"We would use the recent weakness in the group as an opportunity to pounce on JWN shares in front of what we expect will be encouraging September comp-store sales results," wrote Glick. He added that the company's gross margin trends should also improve.

Glick raised his 2009 earnings-per share estimates to $1.60 from $1.52, which is in line with Wall Street's consensus. He also raised his 2010 EPS to $2 from $1.70, well above Wall Street's consensus for $1.82.

Luxury retailers, which were once considered resilient to economic downturns, have reported weaker results over the past few quarters as consumers across more income brackets cut back. Nordstrom has cut prices and adjusted its inventory, but credit-card trends have been worse than planned.

Separately, Fitch Ratings said credit-card performance shouldn't have a negative impact on Nordstrom and fellow retailer Target Corp.'s (TGT) corporate ratings based on current write-off expectations. The agency added it views the company's refinancing risk as manageable.

Meanwhile, other department stores were also trading in positive territory as the Dow Jones U.S. Retail index rose 0.5% to $2,805.81. Saks Inc. (SKS) rose 3% to $6.04 and Macy's Inc. (M), gaining on its exclusive deal to sell Ellen Tracey Sportswear in Spring 2010, rose 3.9% to $18.08.

-By Aja Carmichael, Dow Jones Newswires; 212-416-2187; aja.carmichael@dowjones.com