Glossary
Financial KPIs
What is markup / IMU?
The difference between cost and retail price; initial markup (IMU) is set before any markdown.
Why it matters: IMU sets the headroom you have to absorb markdowns and still hit margin.
How it's worked out: Watch which base you use. Markup on cost % = (retail − cost) ÷ cost × 100. Initial markup is normally expressed on retail: IMU % = (retail − cost) ÷ retail × 100. Example: cost $40, retail $100 gives 150% markup on cost and 60% IMU on retail.