Markdown cancellation definition

What is a Markdown Cancellation?

A markdown cancellation occurs when a previously announced markdown is terminated or reduced in scope. This can mean that an existing markdown now applies to fewer products or services. There are several possible reasons for a markdown cancellation. First, the excess inventory being targeted with the markdown has now been sold off. Second, management has determined that customer interest in the markdown has declined, making it less effective. And third, management does not want to negatively impact profits for too long with the markdown.