Dorothy Lakner says Nordstrom is far more luxurious than Wall Street understands. Lakner, the executive director for retail analysis at CIBC World Markets, explained to "Street Signs" viewers why she thinks the fashion retailer is a smart pick for investors.

Lakner said "the calendar caused a lot of difficulty" for predicting consumer trends this quarter, with Easter falling early in March, combined with fiscal 2006 being a 53-week year.

She told CNBC's Erin Burnett that she believes too many analysts are getting caught up in the seasonal short-term view and missing Nordstrom's big picture: While the retailer's shares dropped 7% over the last three months, she pointed out that the firm gained 50% over the past year.

The retail analyst said Nordstrom benefits from the affluent consumer, who is still "gobbling up" luxury goods. She said the retail chain is aware of that trend, and is "laying in" more luxuries. She also pointed to the company's new loyalty program and said Nordstrom's recovery in women's apparel "has only just begun." Her price target for the stock is $62.