M&S shares fall 4% after warning of 'gathering storm' of costs and consumer spend      

Marks & Spencer said total food sales increased 5.6% in the first half of the year, while clothing and homes sales rose 14%. Picture: Nick Potts/PA Wire

Retailer Marks & Spencer has warned of a "gathering storm" of higher costs and pressure on household budgets, as it reiterated full-year profits would fall. The shares fell 4%.

The clothing and food group reported a 24% decline in profit before tax and adjusting items to £205.5m for the six months to the start of October — slightly ahead of analysts' average forecast.