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markdown cost

jaaskier

Member
Poland, Polish
It is a phrase from a financial report:
" Operating profit decreased as a result of lower sales and higher markdown costs"

Please help me
In an effort to increase sales, retailers sometimes deacrease (or "mark down") prices.

The proceeds of sales will therefore be lower, and if the difference is calculated it can be shown in financial accounts as a "markdown cost".

The extract you have quoted shows higher markdown costs. This means that the costs of reducing prices in this way was higher than expected, or perhaps higher than indicated in a previous set of accounts.
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