JASCh, a Swedish footwear brand, is looking to raise its earnings in 2018 by $1 million from 2019 to 2024, according to an internal company memo leaked to Engadget.
In the memo, JASch says it plans to cut costs by $600 million in 2018 and 2019 to help pay for its “significant investments” in its brand and product line.
In 2019, Jasch plans to spend $1.2 billion on the acquisition of Footwear Online, a platform that offers consumers more information about their footwear.
The company is also planning to focus on improving its online retail experience and offering more in-store customer service.
Jasch’s plans come as a surprise considering the company is currently under fire for making a number of questionable investments in 2018.
The financials leaked by Engadgget indicated the company had made a number $20 million in acquisitions since 2016.
A January 2019 internal memo from JasCh said that it has also made “significant” investments in its online stores and its product line over the last two years.
In 2018, Jatish Patel, the company’s head of global retail operations, said that the company was looking to invest $1 billion in its brands over the next two years and had a plan to invest “more than $1B in the next three years.”
According to Engdnet, Jascons plans are not all good news for investors.
The memo shows that Jascos board of directors has decided that the brand will not be able to raise $1b in revenue from 2019 and 2020, instead it will focus on the 2018 and 2021 quarters, when the brand was already struggling.
Jaschi says it is “considering the impact of this strategic decision” on the brand.
Jascch is still working on a strategy to bring its products to the United States, but according to Engrad, it may need to cut its U.S. footprint in 2018 or 2019 if it wants to maintain its competitive advantage in the footwear market.