mark·​down | \ ˈmärk-ˌdau̇n How to pronounce markdown (audio) \

Definition of markdown

 (Entry 1 of 2)

1 : a lowering of price
2 : the amount by which an original selling price is reduced

mark down

marked down; marking down; marks down

Definition of mark down (Entry 2 of 2)

transitive verb

: to put a lower price on

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Examples of markdown in a Sentence


marked down all seasonal goods immediately after the holidays

Recent Examples on the Web: Noun

More reading Lululemon’s gross profit margin improved in the latest quarter, helped in part by fewer markdowns, finance chief Patrick Guido told analysts on a conference call. Aisha Al-muslim, WSJ, "Lululemon Reports Higher Sales, Raises Full-Year Outlook," 12 June 2019 There are tens of thousands of markdowns on everything from bedding to luxury watches. Blake Bakkila, Good Housekeeping, "Macy's Is Having a Huge Sale on Jewelry, Clothes, and Home — Just in Time for Mother's Day," 30 Apr. 2019 The markdown came following reports that Khloé Kardashian's partner Tristan Thompson had allegedly engaged in PDA with Jordyn. Lauren Rearick, Teen Vogue, "Kylie Jenner Explained Why the Jordyn Woods Lip Kit Was Discounted," 1 Apr. 2019 However, the markdown was part of a Kylie Cosmetics half-off sale that occurred in January. Nicole Saunders, Harper's BAZAAR, "Jordyn Woods Has Been Removed from Khloé Kardashian's Good American Website," 26 Feb. 2019 The Black Friday beauty deals and sales (including Meghan Markle's favorites and insane markdowns at Sephora) are just too good. Glamour, "The Black Friday Beauty Deals You Need to Know," 22 Nov. 2018 In general, target is also rumored to have markdown patterns that follow a schedule. Alex Watt, Redbook, "The Best Days for Holiday Shopping Deals Beyond Black Friday," 3 Dec. 2018 ModCloth: Starting 11/23 through 11/25, score 30 percent off $100, or 40 percent off $200+ sitewide (sales and markdowns included). Tiffany Dodson, SELF, "The Best Black Friday and Cyber Monday 2018 Deals From All of Your Favorite Stores and Brands," 20 Nov. 2018 And while looking ahead to next season is certainly exciting, the prospect of Black Friday markdowns is just as (if not more!) exhilarating. Madeline Fass, Vogue, "The Best Online Black Friday Fashion Deals to Shop From Home," 22 Nov. 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'markdown.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of markdown


1880, in the meaning defined at sense 1


1859, in the meaning defined above

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Statistics for markdown

Last Updated

6 Jul 2019

Look-up Popularity

Time Traveler for markdown

The first known use of markdown was in 1859

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More Definitions for markdown



Financial Definition of markdown

What It Is

Markdown refers to the negative spread between the price a broker charges a client for a security and the highest price at which that security is sold between brokers. It is the opposite of markup.

How It Works

If a broker wishes to increase his sales volume in a security or set of securities, he may choose to sell them at markdown prices. In other words, if a broker sells a security to a client at a lower price than the highest bid (selling) price in the securities market among brokers, the price is a markdown price.

To illustrate, suppose a broker sells shares of XYZ stock to his clients at $20 per share. He originally purchased the shares in the broker market at $40 per share. Therefore, the markdown on the shares he sells is -$20 ($20-$40).

Markdown should not be confused with markup, which is the positive spread between the lowest bid price in the brokers market and the higher price a broker charges to clients.

Why It Matters

The motivation for a broker to sell securities at markdown prices is to kindle trading activity among clients in the hopes that the multiple commissions on a higher sales volume will offset money lost in the negative spread.

Source: Investing Answers



English Language Learners Definition of markdown

: a reduction in price

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