The following table shows the returns and valuations of selected listed retailers. The table is followed by an extract of an article reporting on retailers' profit results.

Discretionary retailers' profits fell during the year thanks to product deflation, a more cautious consumer and online competition swiping market share as punters shopped for better deals and took advantage of the surging local dollar. UBS analyst Ben Gilbert says it was a mixed bag of results for retailers with a negative start from Myer, while JB Hi-Fi performed well and the shine came off the discount retailers that were the standouts a year ago as most were big beneficiaries of the fiscal stimulus handouts. Market watchers say a key theme coming out of reporting season is the stronger Australian dollar and the impact on cost of goods sold, with rising labour and cotton costs out of China expected to put pressure on local retailers to increase prices later this year. 'Among the department discount stores (Kmart, Target and Big W) no one wants to be the first to raise prices,' Gilbert says. It would be a brave move to swing from the deep discounting to which customers have grown accustomed, to higher prices.
a. Explain what is meant by 'P/E times'.
b. Calculate the expected growth in EPS between 2011 and 2012.
c. Explain the impact on a retailer's margins, inventory turnover and liquidity as a result of the retailer having a large sale offering goods at heavily discounted prices.
d. Explain how tightly managed costs and lean inventory contribute to profit.
e. Analysts follow companies and make recommendations as to whether to hold, buy or sell the companies' securities. At the time of writing, there were two hold and two sell recommendations on Billabong International Ltd. Identify the basis for a sell recommendation.
f. Explain how you think the one-year return percentage is calculated.

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1-year total shareholders' return (%) 35.7 17.3 (8.6 0.5) EPS forecast 2012 (cents) EPS 2011 (cents) 32.4 19.0 123.9 178.5 166.3 P/E (times) 8.24 27.0 21.7 132.7 David Jones Ltd Fantastic Holdings JB Hi-Fi Ltd Woolworths Ltd Wesfarmers Harvey Norman Holdings Ltd Billabong International Ltd 12.65 14.93 18.93 9.48 8.34 (25.3) (49) 224.2 21.8 44.5 47