The Dictionary of American Slang, Fourth Edition by Barbara Ann Kipfer, PhD. and Robert L. Chapman, Ph.D. Copyright (C) 2007 by HarperCollins Publishers. Cite This Source
Idioms and Phrases with damaged goods
A person, especially an unmarried woman who is no longer a virgin, as in A person who has sex before marriage is not considered damaged goods in this day and age. This pejorative expression transfers the reduced value of materials (stock, provisions, etc.) marred in some way to women who have had a sexual experience.
[ Early 1900s