Initial Markup (IMU)

Initial markup (IMU) is the difference between the first ticketed retail price and the cost of goods, as a percentage of retail. It is the margin you start the season with — before any markdowns, allowances, or shrink erode it.

IMU sets the ceiling on profitability: the maintained markup you actually keep can only fall from here. Because markdowns are near-inevitable in apparel, IMU has to be planned high enough to absorb them and still land the target maintained margin.

It is set against landed cost, not the quoted FOB price — using FOB overstates the markup you really have.