Marks & Spencer is set to reveal a dramatic decline in profits for the first half of 2008 following a fall-off in sales at the high street giant over the last three months.

M&S is set to announce that second-quarter sales in both food and non-food have dipped by more than 7.5%, according to The Independent.

H1 profits are now thought likely to dip below £300m from a figure of £452m for the equivalent period last year, with the numbers set to be unveiled on Thursday.

M&S shares last week fell once again after broker Morgan Stanley indicated that a dip in its first-half performance was expected.

Meanwhile, Tesco will tomorrow announce its own first-half results, with chief executive Sir Terry Leahy tipped to announce like-for-like sales growth of around 4% for the period.