The Super Retail Group Ltd (ASX: SUL) share price is taking a beating today.
Shares in the S&P/ASX 200 Index (ASX: XJO) retail conglomerate – whose brands include Supercheap Auto, Rebel, BCF and Macpac – closed on Friday trading for $18.23. In midday trade on Monday, shares are swapping hands for $16.85, down 7.5%.
For some context, the ASX 200 is down 0.9% at this same time. Though consumer discretionary stocks are doing it somewhat tougher today, with the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) down 1.4%.
So, why is the Super Retail share price underperforming?
What's happening with the Super Retail share price on Monday?
Atop the broader selling pressure in the consumer discretionary sector today, much of the sell-down in the Super Retail share price relates to the company's 87 cents per share fully franked final dividend.
That's because the ASX 200 retail stock trades ex-dividend today. Meaning investors buying Super Retail shares today are longer eligible to receive that passive income payout. Instead, those dividends will go to investors who held the stock at market close on Friday. Eligible investors can expect to receive that 87 cents per share payout on 17 October.
To be clear, the dividend payout actually comprises a final dividend of 37 cents per share and a special dividend of 50 cents per share. Both are fully franked.
Atop the interim dividend of 32 cents per share, paid on 12 April, the company will have paid out a total of $1.19 in FY 2024 dividends. At the current Super Retail share price, the retail stock trades on a fully franked trailing dividend yield of 7.0%.
Management declared the dividend on 22 August, when the company reported its full-year results.
Core metrics included a 2% year-on-year increase in sales to a record $3.9 billion, while normalised net profit after tax declined by 11% to $242 million.
What's in store?
FY 2025 is off to a solid start for the company despite lingering uncertainty over consumer demand amid ongoing elevated interest rates and inflation.
Commenting on the outlook for the year ahead following the release of the FY 2024 results, Super Retail CEO Anthony Heraghty said, "The group has made a strong start to the year with positive sales momentum across all of our four core brands."
Heraghty added, "The outlook for the consumer in the year ahead remains uncertain given ongoing cost-of-living pressure on household budgets."
Share price summary
The Super Retail share price closed up 6.2% on the day of the results.
And if you look back at the price chart up top, you'll see shares closed at an all-time high this past Friday, which puts today's selling in some perspective.
Since this time last year, shares in the ASX 200 retail stock remain up 42%, not including those juicy dividend payments.
