Markdown

A markdown is a permanent reduction in an item’s retail price to clear inventory. Markdown % — markdown dollars as a share of sales — is a core margin metric: every point of markdown is a point of gross margin given up.

Markdowns are a symptom, not a strategy. Most markdown spend traces back to an earlier decision — an overbuy, a broken size curve, or a late delivery that missed full-price selling. Controlling markdowns starts with the buy and the size plan, not the markdown cadence itself.

Healthy markdown rates vary widely by channel; see the benchmarks for directional ranges.