Quarterly Business Review · Confidential
Q2 2026 Review.
A complete review of Leon Diamond's online business: an eight-metric scorecard, three deep-dive sections, key findings, and an action plan. Numbers only — no noise.
See the resultsQuarterly Business Review · Confidential
A complete review of Leon Diamond's online business: an eight-metric scorecard, three deep-dive sections, key findings, and an action plan. Numbers only — no noise.
See the resultsPerformance Scorecard
Each metric is scored against its target: the result, the benchmark it should meet, and a status flag when it misses.
| Metric | Result | Target | Status |
|---|---|---|---|
| Net sales — Q2 | $218,029 | growing | On target +29.4% vs Q1 |
| Net sales trend — monthly | 3 months falling | stable / rising | Off target |
| Returns — % of gross (Jun) | 16.4% | < 5% | Off target |
| Discounts — % of gross (Q2) | 9.3% | < 8% | Watch |
| AOV (Apr–May) | $1,551 | ≥ $1,000 | On target +45% vs Q1 |
| ROAS net of returns (May) | ~3.6x | ≥ 4x | Off target |
| Ad spend — % of net sales | 22–25% | ≤ 15% | Watch |
| Conversion rate | 0.12% | ≥ 0.5% | Watch |
Summary: the quarter grew on April's strength, but the business exits Q2 with three metrics off target — falling monthly sales, tripled returns, and paid ads whose real efficiency is below the profitable line.
Deep Dive 1 · Revenue
April $101.7K → May $67.6K (−33%) → June $48.7K (−28%). Three consecutive declines. Order volume was flat all year — April's peak came from order value, not more customers.
| Apr | May | Jun | Q2 | Q1 | Δ | |
|---|---|---|---|---|---|---|
| Gross sales | $112,286 | $92,029 | $63,634 | $267,949 | $196,961 | +36% |
| Discounts | −$5,640 | −$14,798 | −$4,482 | −$24,919 | −$18,338 | +36% |
| Returns | −$4,967 | −$9,612 | −$10,422 | −$25,001 | −$10,180 | +146% |
| Net sales | $101,679 | $67,620 | $48,730 | $218,029 | $168,444 | +29% |
Deep Dive 2 · Margin Quality
Rising three straight months to 3x the target limit. $25,001 came back in Q2. The online channel is 8.5% of the store's gross but produces 84% of all its returns ($10.4K of $12.4K in June).
| Month | Discount % | Orders | AOV | Net sales |
|---|---|---|---|---|
| Apr | 5.0% | 60 | $1,711 | $101,679 |
| May | 16.1% | 56 | $1,379 | $67,620 |
Tripling the discount budget bought zero extra orders — it only cut the average ticket by 19%. Diamond customers do not buy because of a sitewide sale.
Deep Dive 3 · Marketing Efficiency
Google costs $518 per order vs Meta's $243 for the same customer. Mid-funnel spend (21% of budget) returns 1.63x — almost certainly a loss after cost of goods.
| Month | TW revenue | Shopify net | Gap | Returns |
|---|---|---|---|---|
| Apr | $102,679 | $101,679 | +$1,000 | $4,967 |
| May | $77,204 | $67,620 | +$9,584 | $9,612 |
May's gap equals May's returns almost to the dollar. Dashboard said 4.07x; reality net of returns: ~3.6x. With June returns at 16.4%, June's dashboard number will overstate even more. Decisions here use ROAS net of returns, always.
Key Findings
| # | Severity | Finding | Evidence |
|---|---|---|---|
| 1 | Off target | Returns tripled and are accelerating; source SKUs unidentified | 4.4% → 10.4% → 16.4% · $25,001/Q2 |
| 2 | Off target | Revenue falling three consecutive months; conversion never improved | $101.7K → $67.6K → $48.7K · CVR 0.12% |
| 3 | Off target | Real ad efficiency below profitable line; Google half as efficient as Meta | ROAS net ~3.6x · Google $518/order vs Meta $243 |
| 4 | Watch | Discounting damages ticket size without adding orders | May: 16.1% disc · 56 orders · AOV −19% |
| 5 | Watch | Two data sources not yet included: email (Klaviyo) and leads (WhatConverts) | not yet in this review |
Action Plan
| # | Action | Addresses finding | Expected effect | Start |
|---|---|---|---|---|
| 1 | Pull returns by product & reason; fix or delist the top offenders | #1 | returns back under 8% in 60 days | This week |
| 2 | Stop sitewide discounts; keep offers to abandoned-cart & VIP only | #4 | recover ~5–8 pts of gross margin | This week |
| 3 | Cut Google Ads 30–40%; kill mid-funnel; reallocate to Meta bottom-funnel | #3 | blended ROAS net ≥ 4x | This month |
| 4 | Conversion sprint: trust signals, financing visibility, book-a-call CTA on product pages | #2 | CVR 0.12% → 0.3% | This month |
| 5 | Connect email & lead data (Klaviyo, WhatConverts) for the next review | #5 | full data coverage next quarter | This month |
Cadence: scorecard refreshed weekly (Mondays); full review repeated quarterly. Next full report: October 2026, covering Q3.