Why is the Super Retail share price tumbling today?

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

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

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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.

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