Today we have decided to exit all of our position in AEO. Our main investment thesis was predicated on a strong consumer demand due to stimulus checks from the government, but that seemed to be priced in starting in late spring/ early summer, so we were too late for that. Meanwhile, analysts got too bullish on this stock, so when the company reported they had missed expectations. Furthermore, we predict that concerns about supply chain disruptions will prevent the stock from moving higher (for example, Nike has a supply shortage issue as Vietnam manufacturers were shut down due to Covid). Taken together, we want to exit the stock and admit loss in this move.