Signet outperformed City expectations during its second quarter, driven by a resilient UK performance.

In the 13 weeks to August 2, the jeweller’s UK division recorded a 0.6 per cent like-for-like fall in sluggish retail conditions.

The H Samuel and Ernest Jones chains notched up like-for-like falls of 0.4 per cent and 0.8 per cent respectively during the period. Dresdner Kleinwort Securities analyst Geoff Lowery said the UK division had “modestly” exceeded expectations. The UK performance was “pleasing” but fourth quarter performance will be key, he added.

Signet’s US division failed to sparkle during the period. It recorded a 5.8 per cent like-for-like slump. Total group sales fell 2.4 per cent to US$768.6 million (£404.3 million), a 4.5 per cent like-for-like decline.

Citi analyst Ben Spruntulis said he is still “cautious in the near term”. Consumer demand “remains weak and visibility of underlying trends in the major markets remains limited”, he added. JP Morgan downgraded its full year like-for-like forecasts to -2.8 per cent in the US but upgraded the UK outlook to flat.

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