Retail tycoon Mike Ashley took a £75million hit today after his Sports World chain became a high profile casualty of England's Euro 2008 exit.

Mr Ashley, who owns Newcastle United, saw the market value of his 68% stake in Sports Direct International tumble 15% after the retailer said England's failure to qualify for next year's European Championships would leave it nursing lower earnings in the current financial year.

Sports Direct's pain was shared by JJB Sports, which saw its share price fall 3%, while England kitmaker Umbro was also 3% lower. The three firms generate a large slice of their business from replica England kit and other merchandise, particularly in tournament years.

Meanwhile, the failure of any of the home nations to qualify for Euro 2008 will also hit the pub market. Shares in Walkabout sports bar owner Regent Inns fell 9% today, but restaurants and nightclubs should benefit as they look forward to a summer without the distraction of a major football tournament.

Last night's result adds to a miserable few months for retail and pubs operators, following a wet summer and the squeeze on consumer spending caused by five interest rate rises.

Today's warning by Sports Direct International is the latest blow for the firm since it listed on the stock market in February. Mr Ashley picked up a £929million windfall from the flotation, but has failed to please investors with a series of downbeat trading updates.

Shares listed at 300p in February but were trading at 94.75p today, valuing Mr Ashley's holding at about £388million.
Philip Dorgan, an analyst at Panmure Gordon stockbrokers, cut his price target to just 80p, giving the company a market value of under £500million.

He added: "We believe that there is more wrong with Sports Direct than the sale of a few England shirts."

With the company's financial year ending in April, the impact of England exit will be felt this year and in the following 12 month period. Sports Direct is expected to achieve underlying earnings of £186 million this year, down £10million on previous City forecasts and below last year's figure of £191million.

Kit maker Umbro also admitted the impact of England's failure to qualify for next year's tournament would have some effect on revenues in the current financial year. The effect on 2008 will be more pronounced due to a substantial reduction in sales volumes for a new England away jersey.

It is looking to reduce its reliance on the fortunes of the national team by pursuing growth in branded products and in international markets.

Shares were 3% lower at 170p, although analysts said this could fall to 100p if a recent takeover offer from American sportswear giant Nike falls through.

JJB Sports, the UK's second largest sports retailer, did not issue a statement today, although it recently pledged to cut its reliance on major football tournaments after reporting a halving of interim profits.