Why is the Super Retail share price tumbling today?

This ASX 200 retail share has dropped heavily into the red on Monday.

| More on:
Sad shopper sitting on a sofa with shopping bags and lamenting the fall in ASX retail shares of late.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Super Retail Group Ltd (ASX: SUL) share price is one of the market's heaviest fallers on Monday.

The Super Retail share price is down 4.9% to $17.91, while the ASX 200 is down 0.3% to 8,842 points at the time of writing.

So, what's going on with Super Retail shares today?

Why is the Super Retail share price in the red?

The answer is easy: It's ex-dividend day.

It's typical for an ASX stock to fall on the ex-dividend date because it is no longer trading with the next dividend attached.

So, Super Retail shares are less valuable to investors today than they were on Friday.

With the August earnings season over, Super Retail is one of more than 35 ASX shares going ex-dividend this week.

Super dividend from ASX 200 retail share

Super Retail shares will pay 64 cents per share on 16 October.

That payment is made up of two components: A final dividend of 34 cents per share and a special dividend of 30 cents per share.

Super Retail was among a small group of ASX companies that announced special dividends during earnings season.

Super Retail Group owns several brands, including Supercheap Auto, Rebel, BCF, and Macpac.

Judith Swales, chair of Super Retail, explained the reasoning behind the special dividend in the company's annual report.

Swales said:

In recognition of the Group's robust performance and resilient balance sheet, the Board determined to pay a fully franked final ordinary dividend of 34 cents a share in FY25, which is towards the upper end of our dividend payout policy.

In addition to the final ordinary dividend, shareholders will receive a fully franked special dividend of 30 cents a share.

The Board's determination reflects our confidence in the Company's financial health and our commitment to providing strong returns.

Despite the challenges for our business, we were pleased to deliver double-digit total shareholder returns during the year, an outcome that compares favourably to many of our domestic retail peers.

The reward for investors followed a 4.5% increase in group sales revenue to $4.1 billion in FY25.

However, normalised net profit after tax (NPAT) fell 4% to $232 million, and statutory NPAT dropped 8% to $222 million.

The full-year FY25 dividend was 96 cents per share.

That gives Super Retail shares a 12-month trailing dividend yield of 5.2% plus 100% franking.

Dividend reinvestment plan suspended

Investors who want their next dividend payment automatically reinvested in more Super Retail shares through the company's dividend reinvestment plan (DRP) must submit their DRP elections by 5pm (AEST) on Wednesday.

The DRP shares will be allocated to investors on the same day as the dividends are paid — 16 October.

Super Retail has announced it will suspend its DRP in FY26.

ASX 200 retail share snapshot

The Super Retail share price has risen 6% over the past 12 months.

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Super Retail Group. The Motley Fool Australia has positions in and has recommended Super Retail Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Retail Shares

A happy young couple celebrate a win by jumping high above their new sofa.
Retail Shares

Why this ASX 300 furniture retailer is soaring on Monday

The Nick Scali share price is soaring after the furniture retailer delivered a solid earnings upgrade.

Read more »

ecommerce asx shares represented by santa doing online shopping on laptop
Healthcare Shares

Looking for ideas before Christmas? These 2 ASX shares stand out to me

Two ASX shares at opposite ends of the market are catching my attention as the year draws to a close.

Read more »

A man points at a paper as he holds an alarm clock, indicating the ex-dividend date is approaching.
Retail Shares

Where will Wesfarmers shares be in 3 years?

This business continues to be an impressive long-term performer.

Read more »

Stressed shopper holding shopping bags.
Retail Shares

Bell Potter names three retail stock picks for your Christmas hamper

These three retail stocks will help set you up for a strong start to 2026, the broker says.

Read more »

A happy young couple celebrate a win by jumping high above their new sofa.
Share Market News

What could keep Harvey Norman shares climbing in 2026?

The property assets and share buyback program could carry the rally into 2026.

Read more »

A woman smiles over the top of multiple shopping bags she is holding in both hands up near her face.
Broker Notes

Broker tips 68% upside for Myer shares following brutal sell-off

Could a turnaround be on the cards?

Read more »

A mature aged man with grey hair and glasses holds a fan of Australian hundred dollar bills up against his mouth and looks skywards with his eyes as though he is thinking what he might do with the cash.
Dividend Investing

Here's how another $5,000 invested in this high-yield ASX 200 star could boost my dividend income over time!

This high-yield ASX 200 retailer has slipped under $1, but its dividend profile remains one of the strongest in the…

Read more »

Woman looking at prices for televisions in an electronics store.
Retail Shares

Up 50% in 2025, should you buy Harvey Norman shares before Christmas?

Two leading investment experts deliver their verdicts on Harvey Norman’s surging shares.

Read more »