RSPD Overview

Earnings Report Highlights: CarMax reported fourth-quarter sales of $6 billion, exceeding expectations, while retail used unit sales rose 6.2% year-over-year; however, earnings per share fell short of analyst estimates at 58 cents.

Future Outlook and Expansion Plans: The company plans to open six new store locations and four reconditioning/auction centers in fiscal year 2026, with projected capital expenditures of approximately $575 million due to deferred land purchases.

Dividend Information: Invesco S&P 500 Equal Weight Consumer Discretionary ETF (RSPD) has a dividend of $0.1810 payable on March 28 for shareholders recorded on March 24, with an ex-dividend date also on March 24.

Market Outlook: A BofA survey indicates slower global growth leading to a defensive stance among investors, while Citi maintains a bullish year-end call for the S&P 500 amidst varying target adjustments from other analysts.

Citi Research's S&P 500 Outlook: Citi Research maintains a bullish year-end target of 6,500 for the S&P 500, supported by an earnings forecast of $270 per share, despite anticipated challenges such as rising tariffs and inflation in 2025.

Sector Adjustments and Market Sentiment: The bank has upgraded its outlook on Health Care while downgrading Consumer Discretionary, amidst increasing skepticism from other investment banks like Goldman Sachs and RBC Capital Markets regarding the S&P 500's performance.

Consumer Discretionary Sector Performance: The Consumer Discretionary sector has struggled in 2025, with a year-to-date decline of -15.6%, making it the worst-performing sector compared to the S&P 500 benchmark.

Top Performing Stocks: Despite the challenges, Seeking Alpha highlighted the top 10 best performing Consumer Discretionary stocks, with Life Time Group Holdings leading at +26% YTD, followed by Dana Incorporated and Light & Wonder.

Market Overview: Wall Street faced significant losses, with the Dow Jones dropping nearly 500 points and the Nasdaq Composite falling by 2.4%, driven by negative economic sentiment.

AutoZone's Performance: Despite the market downturn, AutoZone's stock rose by 1% to an all-time high, reflecting strong analyst ratings and resilience, with a notable increase of 15.4% over the past year.

Merger Termination: Tapestry, Inc. and Capri Holdings Limited have mutually agreed to terminate their merger agreement due to legal uncertainties, with Tapestry set to redeem $6.1 billion in senior notes and reimburse Capri $45 million for transaction-related expenses.

Financial Outlook: Tapestry's Board approved a $2 billion share repurchase program and reaffirmed its FY25 revenue guidance of over $6.75 billion, while maintaining an annual dividend of $1.40 per share.