### Comment:
that's what they're claiming but i don't buy it. their cost to acquire customers (per customer) is going up. their margins are already terrible (sub 3% per their last investor presentation). their accrued liabilities and inventory are both signficantly up, which points to an additional increase in SG&amp;A moving forward 
  
 simply put, all signs point to this business model not scaling well.

### REPLY:
You're forgetting that they can do what Amazon does - create their own brands to maximize profit. Their social media presence sucks, they need to up their Instagram game.  
  
 I'm not completely sold on their model either. But SFIX is essentially what some people have been saying about Amazon moving to 0-click ordering, where they just send you stuff and if you keep it they charge you.

### END.