The world's largest speciality jeweller, Signet Group, has reported encouraging figures for sales in the first quarter.

According to the company, sales topped £340 million, an increase of 4.6 per cent upon the previous quarter.

However, in America total sales in the first quarter fell 6.4 per cent, with same store sales up 1.1 per cent.

'Against the background of demanding comparatives the US division increased like for like sales,' commented Terry Burman, Group chief executive.

'The business performed strongly during the Valentine's Day period; subsequent trading was affected by inclement weather in late February and early March,' he added.

Mr Burman said it was too early to gauge the effect of the war in Iraq and the later timing of Easter.

Nevertheless he warned that despite the encouraging figures there were signs that consumer demand in the market might falter in the future.