Meanwhile, GoPro dialed up its second and third quarter marketing spend to drive consumer awareness and demand for its cameras ahead of the holidays.

Groupon Inc.’s profits from its Goods division grew nearly 13%, even as its revenue from the division fell about 7.1%, the company reported Friday. Goods is the division of Groupon that sells physical goods.

Those results are the latest positive sign from the company’s push to reduce so-called “empty calories,” the low- to negative-margin products that drive short-term increases in revenue but do little to generate long-term profits.

While Goods had been one of Groupon’s fastest-growing channels, over the past year the company has come to view the division as complementary to its core local offers, John Wild, vice president, North America marketing, recently told Internet Retailer. “Goods is a great customer activator, it helps us acquire new customers and introduce them to our brand,” he says. “But where we stand out is our ability to help local businesses market.”

The company is still in the midst of a massive shift, said CEO Rich Williams on a conference call with analysts on Friday. “We still have work ahead of us in the second phase of Groupon’s evolution and we’re pushing forward every day,” he said.

For the second quarter ended June 30, Groupon, No. 41 in the Internet Retailer 2017 Top 500, reported:

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  • Total revenue of $662.6 million, up 7.3% from $617.4 million a year earlier.
  • North American revenue of $380.3 million, down 15.8% from $451.9 million.
  • International sales of $237.1 million, up 12.5% from $210.7 million.
  • Groupon Goods revenue of $330.5 million, down 7.1% from $355.9 million.
  • Groupon Goods profit of $65.8 million, up 12.7% from $58.4 million.
  • North American revenue for Groupon Goods of $174.5 million, down 21.4% from $222.1 million.
  • North American profit from Groupon Goods of $37.8 million, up 3.6% from $36.5 million.
  • International revenue for Groupon Goods of $156.0 million, up 16.6% from $133.8 million.
  • International profit from Groupon Goods of $28.0 million, up 27.9% from $21.9 million.
  • A loss from continuing operations of $64.2 million, compared with a $7.4 million loss.
  • Net loss of $92.3 million, compared with a year-ago loss of $6.8 million.
  • Gross billings, which reflect the total amount consumers paid for Groupon vouchers, excluding applicable taxes and refunds, stood at $1.264 billion, a 7.3% decrease from $1.364 billion.

In other news related to publicly traded retailers:

  • GoPro Inc., No. 460, generated revenue of $282.7 million in the second quarter, a 4.7% dip from $$296.5 million, the company reported Thursday. “We have significantly dialed up our second and third quarter marketing spend to drive consumer awareness and demand for GoPro ahead of the holidays, and it’s having an impact,” said Nicholas Woodman, founder and CEO, in a statement. He anticipates GoPro will be profitable in the second half of 2018 and through 2019. “GoPro’s overall digital presence is currently at levels we normally only see during the holidays,” he says. “Engagement is at a two-year high and our advertising has driven a steady increase in website traffic, as well as a double-digit increase in organic conversion to sale.”
  • Sonos Inc., No. 217, began trading on Wednesday. As of mid-day Friday, its shares were trading more than 28% above its $16.50 IPO price.
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