The Collaborative International Dictionary of English v.0.48:

Worst \Worst\, v. t. [imp. & p. p. Worsted; p. pr. & vb. n.
   Worsting.] [See Worse, v. t. & a.]
   To gain advantage over, in contest or competition; to get the
   better of; to defeat; to overthrow; to discomfit.
   [1913 Webster]

         The . . . Philistines were worsted by the captivated
         ark.                                     --South.
   [1913 Webster]

The Collaborative International Dictionary of English v.0.48:

Worsted \Worst"ed\ (?; 277), n. [From Worsted, now spelled
   Worstead, a town in Norfolk, England; for Worthstead. See
   Worth, n., and Stead.]
   [1913 Webster]
   1. Well-twisted yarn spun of long-staple wool which has been
      combed to lay the fibers parallel, used for carpets,
      cloth, hosiery, gloves, and the like.
      [1913 Webster]

   2. Fine and soft woolen yarn, untwisted or lightly twisted,
      used in knitting and embroidery.
      [1913 Webster]

WordNet (r) 3.0 (2006):

worsted
    n 1: a woolen fabric with a hard textured surface and no nap;
         woven of worsted yarns "he wore a worsted suit"
    2: a tightly twisted woolen yarn spun from long-staple wool
       [syn: worsted, worsted yarn]