Williams-Sonoma, Inc. announces third quarter 2020 results

Net comparable brand revenue growth accelerates to 24.4%
GAAP operating margin of 15.6%; Non-GAAP operating margin expansion of 810bps to 15.7%
GAAP diluted EPS of $2.54; Non-GAAP diluted EPS of $2.56, growing over 150%

SAN FRANCISCO--()--Williams-Sonoma, Inc. (NYSE: WSM) today announced operating results for the third fiscal quarter ended November 1, 2020 (“Q3 20”) versus the third fiscal quarter ended November 3, 2019 (“Q3 19”).

In the third quarter, sales again outperformed expectations with demand comp up nearly 31% compared to a net comp of 24%, driven by strength across all brands. E-commerce accelerated sequentially to a record net comp of over 49% and we were pleased to see our store performance improve throughout the quarter to a net comp of negative 11%. Even more encouraging is the retail demand comp at negative 4%. And, we delivered these sales more profitably, with operating margins reaching record levels at 15.7%,” said Laura Alber, President and Chief Executive Officer.

Our company’s mission is to enhance the quality of people’s lives at home. We have built our business with this mission at the forefront, investing in areas that matter most to our customers. These include:

  1. High quality, well-designed, sustainable products at a great value because of our scale and vertical supply chain;
  2. Inspiring marketing, and;
  3. The convenience of our high-touch digital-first omnichannel experience.

And this, combined with our loved brands that serve a wide range of customers across aesthetics and price points, is our distinctive positioning and our competitive advantage,” Alber continued.

Alber concluded, “Our vision is to own the home. And, with our distinctive positioning we will only become more relevant. We have the strategies, the team and the world-class platform to maximize the industry trends that favor our business and successfully execute on our growth opportunities. We are confident that we will continue to drive accelerating sales growth with increasing profitability and evolve into an even more attractive business for our stakeholders during and post pandemic.”

THIRD QUARTER 2020

  • Net revenue growth of 22.4% to $1.765 billion, driven by acceleration across all brands
  • Demand comparable brand revenue growth accelerated to 31%, which includes orders placed but not yet filled or charged to the customer in the quarter
  • Net comparable brand revenue growth of 24.4%, with sequential and year-over-year acceleration in all brands, including Williams Sonoma at a record 30.4%, Pottery Barn at 24.1%, Pottery Barn Kids and Teen at 23.8% and West Elm at 21.8%
  • E-commerce net comparable brand revenue growth accelerated to 49.3% with e-commerce penetration holding at almost 70% of total net revenues
  • GAAP and non-GAAP gross margin of 40.0%, expanding approximately 400bps and driven by higher year-over-year merchandise margins and occupancy leverage
  • GAAP and non-GAAP occupancy costs were $174 million, leveraging approximately 250bps
  • GAAP SG&A rate of 24.4%; non-GAAP SG&A rate of 24.3%, leveraging approximately 410bps and reflecting substantially higher advertising ROI and the strength of our topline performance
  • GAAP operating margin of 15.6%; non-GAAP operating margin of 15.7%, more than double that of last year and the highest quarterly operating margin performance outside of a holiday fourth quarter
  • GAAP diluted EPS of $2.54; non-GAAP diluted EPS of $2.56, over 150% higher than last year
  • Maintained strong liquidity position of $773 million in cash, including approximately $727 million in operating cash flow resulting from our strong performance year to date, enabling the company to repay in full all short-term borrowings under its $500 million revolver, reinstate its share repurchase program and repurchase $109 million in shares in the third quarter, and commit to increasing its next quarterly dividend payment by 10% to $0.53 per share

GUIDANCE

Given the dynamic nature of the COVID-19 crisis and the continuing macroeconomic uncertainty that could impact its performance, the company is not providing guidance for fiscal year 2020.

Long-Term Financial Guidance

  • Total net revenues growth of mid to high single digits
  • Non-GAAP operating margin expansion
  • Above-industry average ROIC (See Exhibit 1)

CONFERENCE CALL AND WEBCAST INFORMATION

Williams-Sonoma, Inc. will host a live conference call today, November 19, 2020, at 2:00 P.M. (PT). The call, hosted by Laura Alber, President and Chief Executive Officer, will be open to the general public via live webcast and can be accessed at http://ir.williams-sonomainc.com/events. A replay of the webcast will be available at http://ir.williams-sonomainc.com/events.

SEC REGULATION G NON-GAAP INFORMATION

This press release includes non-GAAP financial measures. Exhibit 1 provides reconciliations of these non-GAAP financial measures to the most comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”). We have not provided a reconciliation of non-GAAP guidance measures to the corresponding GAAP measures on a forward-looking basis due to the potential variability and limited visibility of excluded items; these excluded items include expenses related to the acquisition of Outward, Inc., severance-related reorganization expenses, inventory-related charges and store asset impairments due to the impact of COVID-19, and net income tax expense (benefit) associated with tax legislation changes and non-recurring tax adjustments. We believe that these non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, can provide meaningful supplemental information for investors regarding the performance of our business and facilitate a meaningful evaluation of current period performance on a comparable basis with prior periods. Our management uses these non-GAAP financial measures in order to have comparable financial results to analyze changes in our underlying business from quarter to quarter. In addition, certain other items may be excluded from non-GAAP financial measures when the company believes this provides greater clarity to management and investors. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for or superior to the GAAP financial measures presented in this press release and our financial statements and other publicly filed reports. Non-GAAP measures as presented herein may not be comparable to similarly titled measures used by other companies.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they do not fully materialize or are proven incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. Such forward-looking statements include statements relating to: our ability to capture significant opportunities in the home furnishings industry and increase our market share; our ability to continue to improve performance; the sustainability of our online growth; our ability to fill all of the orders placed in the quarter; the quality of our product pipeline, marketing efforts and omnichannel experience; the impact of COVID-19 on our business, including the impact on our supply chain and ability to deliver product timely and the potential for decreased demand for our products once the pandemic lessens and consumers return to normal purchasing patterns; our competitive advantages; our focus on operational excellence; our ability to improve customers’ experience; industry trends; our optimism about the future; our ability to maximize growth and maintain high profitability; our commitment to increase quarterly dividend payments; and our long-term financial targets.

The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include: continuing changes in general economic conditions, and the impact on consumer confidence and consumer spending; the impact of the coronavirus on our global supply chain, retail store operations and customer demand and our ability to respond to such impact, new interpretations of or changes to current accounting rules; our ability to anticipate consumer preferences and buying trends; dependence on timely introduction and customer acceptance of our merchandise; changes in consumer spending based on weather, political, competitive and other conditions beyond our control; delays in store openings; competition from companies with concepts or products similar to ours; timely and effective sourcing of merchandise from our foreign and domestic vendors and delivery of merchandise through our supply chain to our stores and customers; effective inventory management; our ability to manage customer returns; successful catalog management, including timing, sizing and merchandising; uncertainties in e-marketing, infrastructure and regulation; multi-channel and multi-brand complexities; our ability to introduce new brands and brand extensions; challenges associated with our increasing global presence; dependence on external funding sources for operating capital; disruptions in the financial markets; our ability to control employment, occupancy and other operating costs; our ability to improve our systems and processes; changes to our information technology infrastructure; general political, economic and market conditions and events, including war, conflict or acts of terrorism and the impact of the results of the U.S. presidential election; the impact of current and potential future tariffs and our ability to mitigate impacts; and other risks and uncertainties described more fully in our public announcements, reports to stockholders and other documents filed with or furnished to the SEC, including our Annual Report on Form 10-K for the fiscal year ended February 2, 2020 and all subsequent quarterly reports on Form 10-Q and current reports on Form 8-K. We have not filed our Form 10-Q for the quarter ended November 1, 2020. As a result, all financial results described here should be considered preliminary, and are subject to change to reflect any necessary adjustments or changes in accounting estimates that are identified prior to the time we file the Form 10-Q. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we assume no obligation to update these forward-looking statements.

ABOUT WILLIAMS-SONOMA, INC.

Williams-Sonoma, Inc. is a specialty retailer of high-quality products for the home. These products, representing distinct merchandise strategies — Williams Sonoma, Pottery Barn, Pottery Barn Kids, West Elm, Pottery Barn Teen, Williams Sonoma Home, Rejuvenation, and Mark and Graham — are marketed through e-commerce websites, direct-mail catalogs and retail stores. These brands are also part of The Key Rewards, our free-to-join loyalty program that offers members exclusive benefits across the Williams-Sonoma family of brands. We operate in the U.S., Puerto Rico, Canada, Australia and the United Kingdom, offer international shipping to customers worldwide, and have unaffiliated franchisees that operate stores in the Middle East, the Philippines, Mexico and South Korea, as well as e-commerce websites in certain locations.

Condensed Consolidated Statements of Earnings (unaudited)

 

Thirteen Weeks Ended

Thirty-nine Weeks Ended

November 1, 2020

November 3, 2019

November 1, 2020

November 3, 2019

In thousands, except per share amounts

$

% of
Revenues

$

% of
Revenues

$

% of
Revenues

$

% of
Revenues

 

Net revenues

1,764,536

100

%

1,442,472

100

%

4,490,516

100

%

4,054,418

100

%

Cost of goods sold

1,058,953

60.0

%

924,300

64.1

%

2,819,471

62.8

%

2,608,054

64.3

%

Gross profit

705,583

40.0

%

518,172

35.9

%

1,671,045

37.2

%

1,446,364

35.7

%

Selling, general and administrative expenses

430,979

24.4

%

416,281

28.9

%

1,162,435

25.9

%

1,184,176

29.2

%

Operating income

274,604

15.6

%

101,891

7.1

%

508,610

11.3

%

262,188

6.5

%

Interest expense, net

5,344

0.3

%

2,564

0.2

%

13,967

0.3

%

7,486

0.2

%

Earnings before income taxes

269,260

15.3

%

99,327

6.9

%

494,643

11.0

%

254,702

6.3

%

Income taxes

67,488

3.8

%

24,614

1.7

%

122,884

2.7

%

64,685

1.6

%

Net earnings

201,772

11.4

%

74,713

5.2

%

371,759

8.3

%

190,017

4.7

%

Earnings per share (EPS):

Basic

$2.60

$0.96

$4.80

$2.43

Diluted

$2.54

 

$0.94

 

$4.71

 

$2.39

 

Shares used in calculation of EPS:

 

 

 

Basic

77,487

77,897

77,511

78,356

Diluted

79,332

 

79,191

 

79,012

 

79,465

 

3rd Quarter Net Revenues and Comparable Brand Revenue Growth (Decline) by Concept*

 

Net Revenues
(Millions)

Comparable Brand Revenue
Growth (Decline)

 

Q3 20

Q3 19

Q3 20

Q3 19

Pottery Barn

$

684

$

557

24.1

%

3.4

%

West Elm

$

475

$

390

21.8

%

14.1

%

Williams Sonoma

$

260

$

205

30.4

%

(2.1

%)

Pottery Barn Kids and Teen

$

278

$

228

23.8

%

4.0

%

Other

$

68

$

62

N/A

 

N/A

 

Total

$

1,765

$

1,442

24.4

%

5.5

%

*See the Company’s 10-K and 10-Q filings for the definition of comparable brand revenue, which is calculated on a 13-week to 13-week basis for both Q3 2019 and Q3 2020. Comparable stores that were temporarily closed due to COVID-19 were not excluded from the comparable stores calculation for Q3 2020.

Condensed Consolidated Balance Sheets (unaudited)

 

In thousands, except per share amounts

November 1, 2020

February 2, 2020

November 3, 2019

ASSETS

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

773,170

 

$

432,162

 

$

155,025

 

Accounts receivable, net

 

129,782

 

 

111,737

 

 

110,131

 

Merchandise inventories, net

 

1,125,475

 

 

1,100,544

 

 

1,258,541

 

Prepaid expenses

 

84,974

 

 

90,426

 

 

115,288

 

Other current assets

 

23,556

 

 

20,766

 

 

20,260

 

Total current assets

 

2,136,957

 

 

1,755,635

 

 

1,659,245

 

Property and equipment, net

 

869,092

 

 

929,038

 

 

915,740

 

Operating lease right-of-use assets

 

1,091,649

 

 

1,166,383

 

 

1,194,061

 

Deferred income taxes, net

 

42,185

 

 

47,977

 

 

41,763

 

Goodwill

 

85,402

 

 

85,343

 

 

85,355

 

Other long-term assets, net

 

85,394

 

 

69,666

 

 

67,660

 

Total assets

$

4,310,679

 

$

4,054,042

 

$

3,963,824

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities

 

 

 

Accounts payable

$

562,294

 

$

521,235

 

$

444,279

 

Accrued expenses

 

194,985

 

 

175,003

 

 

140,789

 

Gift card and other deferred revenue

 

349,671

 

 

289,613

 

 

296,157

 

Income taxes payable

 

36,037

 

 

22,501

 

 

13,182

 

Current debt

 

 

 

299,818

 

 

 

Borrowings under revolving line of credit

 

 

 

 

 

100,000

 

Operating lease liabilities

 

217,448

 

 

227,923

 

 

225,530

 

Other current liabilities

 

99,691

 

 

73,462

 

 

68,973

 

Total current liabilities

 

1,460,126

 

 

1,609,555

 

 

1,288,910

 

Deferred rent and lease incentives

 

21,858

 

 

27,659

 

 

29,388

 

Long-term debt

 

299,173

 

 

 

 

299,769

 

Long-term operating lease liabilities

 

1,027,142

 

 

1,094,579

 

 

1,127,403

 

Other long-term liabilities

 

100,478

 

 

86,389

 

 

86,461

 

Total liabilities

 

2,908,777

 

 

2,818,182

 

 

2,831,931

 

Stockholders’ equity

 

 

 

Preferred stock: $.01 par value; 7,500 shares authorized; none issued

 

 

 

 

 

 

Common stock: $.01 par value; 253,125 shares authorized; 76,697, 77,137 and 77,612 shares issued and outstanding at November 1, 2020, February 2, 2020 and November 3, 2019, respectively

 

768

 

 

772

 

 

777

 

Additional paid-in capital

 

623,379

 

 

605,822

 

 

594,991

 

Retained earnings

 

792,196

 

 

644,794

 

 

550,774

 

Accumulated other comprehensive loss

 

(13,843

)

 

(14,587

)

 

(13,708

)

Treasury stock, at cost

 

(598

)

 

(941

)

 

(941

)

Total stockholders’ equity

 

1,401,902

 

 

1,235,860

 

 

1,131,893

 

Total liabilities and stockholders’ equity

$

4,310,679

 

$

4,054,042

 

$

3,963,824

 

Retail Store Data (unaudited)

 

August 2, 2020

Openings

Closings

November 1, 2020

November 3, 2019

Williams Sonoma

210

1

(1)

210

218

Pottery Barn

201

1

(1)

201

205

West Elm

121

2

(1)

122

114

Pottery Barn Kids

72

(1)

71

79

Rejuvenation

10

10

10

Total

614

4

(4)

614

626

Condensed Consolidated Statements of Cash Flows (unaudited)

 

 

Thirty-nine Weeks Ended

In thousands

November 1,
2020

November 3,
2019

Cash flows from operating activities:

 

 

Net earnings

$

371,759

 

$

190,017

 

Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:

 

 

Depreciation and amortization

 

140,340

 

 

140,495

 

(Gain) loss on disposal/impairment of assets

 

26,220

 

 

682

 

Amortization of deferred lease incentives

 

(4,538

)

 

(5,985

)

Non-cash lease expense

 

162,767

 

 

160,138

 

Deferred income taxes

 

(6,969

)

 

(10,937

)

Tax benefit related to stock-based awards

 

13,143

 

 

13,648

 

Stock-based compensation expense

 

54,671

 

 

49,516

 

Other

 

(9

)

 

14

 

Changes in:

 

 

Accounts receivable

 

(18,017

)

 

(2,842

)

Merchandise inventories

 

(22,990

)

 

(133,637

)

Prepaid expenses and other assets

 

(4,807

)

 

(24,157

)

Accounts payable

 

54,279

 

 

(92,101

)

Accrued expenses and other liabilities

 

58,539

 

 

(24,148

)

Gift card and other deferred revenue

 

59,953

 

 

5,848

 

Operating lease liabilities

 

(171,245

)

 

(168,308

)

Income taxes payable

 

13,532

 

 

(8,293

)

Net cash provided by operating activities

 

726,628

 

 

89,950

 

Cash flows from investing activities:

 

 

Purchases of property and equipment

 

(124,885

)

 

(121,154

)

Other

 

506

 

 

470

 

Net cash used in investing activities

 

(124,379

)

 

(120,684

)

Cash flows from financing activities:

 

 

Borrowings under revolving line of credit

 

487,823

 

 

100,000

 

Repayments under the revolving line of credit

 

(487,823

)

 

 

Payment of dividends

 

(116,761

)

 

(113,159

)

Repurchases of common stock

 

(109,048

)

 

(112,714

)

Tax withholdings related to stock-based awards

 

(30,555

)

 

(26,623

)

Debt issuance costs

 

(3,645

)

 

 

Net cash used in financing activities

 

(260,009

)

 

(152,496

)

Effect of exchange rates on cash and cash equivalents

 

(1,232

)

 

(699

)

Net increase (decrease) in cash and cash equivalents

 

341,008

 

 

(183,929

)

Cash and cash equivalents at beginning of period

 

432,162

 

 

338,954

 

Cash and cash equivalents at end of period

$

773,170

 

$

155,025

 

Exhibit 1
 
3rd Quarter GAAP to Non-GAAP Reconciliation

(unaudited)

(Dollars in thousands, except per share data)
Thirteen Weeks Ended Thirty-nine Weeks Ended
November 1, 2020 November 3, 2019 November 1, 2020 November 3, 2019
$ % of
revenues
$ % of
revenues
$ % of
revenues
$ % of
revenues
Gross profit

$

705,583

 

40.0

%

$

518,172

 

35.9

%

$

1,671,045

 

37.2

%

$

1,446,364

 

35.7

%

Outward-related1

 

-

 

 

726

 

 

-

 

 

2,140

 

Employment-related expense2

 

-

 

 

-

 

 

-

 

 

30

 

Inventory write-off3

 

-

 

 

-

 

 

11,378

 

 

-

 

Non-GAAP gross profit

$

705,583

 

40.0

%

$

518,898

 

36.0

%

$

1,682,423

 

37.5

%

$

1,448,534

 

35.7

%

 
Selling, general and administrative expenses

$

430,979

 

24.4

%

$

416,281

 

28.9

%

$

1,162,435

 

25.9

%

$

1,184,176

 

29.2

%

Outward-related1

 

(2,219

)

 

(6,636

)

 

(8,918

)

 

(18,864

)

Employment-related expense2

 

-

 

 

(623

)

 

-

 

 

(7,742

)

Asset impairment4

 

-

 

 

-

 

 

(21,975

)

 

-

 

Non-GAAP selling, general and administrative expenses

$

428,760

 

24.3

%

$

409,022

 

28.4

%

$

1,131,542

 

25.2

%

$

1,157,570

 

28.6

%

 
Operating income

$

274,604

 

15.6

%

$

101,891

 

7.1

%

$

508,610

 

11.3

%

$

262,188

 

6.5

%

Outward-related1

 

2,219

 

 

7,362

 

 

8,918

 

 

21,004

 

Employment-related expense2

 

-

 

 

623

 

 

-

 

 

7,772

 

Inventory write-off3

 

-

 

 

-

 

 

11,378

 

 

-

 

Asset impairment4

 

-

 

 

-

 

 

21,975

 

 

-

 

Non-GAAP operating income

$

276,823

 

15.7

%

$

109,876

 

7.6

%

$

550,881

 

12.3

%

$

290,964

 

7.2

%

$

Tax rate

$

Tax rate

$

Tax rate

$

Tax rate

Income taxes

$

67,488

 

25.1

%

$

24,614

 

24.8

%

$

122,884

 

24.8

%

$

64,685

 

25.4

%

Outward-related1

 

473

 

 

1,511

 

 

1,665

 

 

4,475

 

Employment-related expense2

 

-

 

 

480

 

 

-

 

 

(302

)

Inventory write-off3

 

-

 

 

-

 

 

2,940

 

 

-

 

Asset impairment4

 

-

 

 

-

 

 

5,324

 

 

-

 

Deferred tax liability adjustment5

 

647

 

 

-

 

 

647

 

 

-

 

Tax legislation6

 

-

 

 

(98

)

 

-

 

 

(98

)

Non-GAAP income taxes

$

68,608

 

25.3

%

$

26,507

 

24.7

%

$

133,460

 

24.9

%

$

68,760

 

24.3

%

 
Diluted EPS

$

2.54

 

$

0.94

 

$

4.71

 

$

2.39

 

Outward-related1

 

0.02

 

 

0.07

 

 

0.09

 

 

0.21

 

Employment-related expense2

 

-

 

 

-

 

 

-

 

 

0.10

 

Inventory write-off3

 

-

 

 

-

 

 

0.11

 

 

-

 

Asset impairment4

 

-

 

 

-

 

 

0.21

 

 

-

 

Deferred tax liability adjustment5

 

(0.01

)

 

-

 

 

(0.01

)

 

-

 

Non-GAAP Diluted EPS*

$

2.56

 

$

1.02

 

$

5.11

 

$

2.70

 

* Per share amounts may not sum due to rounding to the nearest cent per diluted share

SEC Regulation G – Non-GAAP Information

These tables include non-GAAP gross profit, gross margin, selling, general and administrative expense, operating income, operating margin, income taxes, effective tax rate and diluted EPS. We believe that these non-GAAP financial measures provide meaningful supplemental information for investors regarding the performance of our business and facilitate a meaningful evaluation of our quarterly actual results on a comparable basis with prior periods. Our management uses these non-GAAP financial measures in order to have comparable financial results to analyze changes in our underlying business from quarter to quarter. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

Notes to Exhibit 1:

  1. During Q3 and year-to-date 2020, we incurred approximately $2.2 million and $8.9 million, respectively, associated with acquisition-related compensation expense and the amortization of acquired intangibles for Outward, Inc. and, during Q3 and year-to-date 2019, we incurred approximately $7.4 million and $21.0 million associated with acquisition-related compensation expense and the amortization of acquired intangibles, as well as the operations of Outward, Inc.
  2. During Q3 and year-to-date 2019, we incurred approximately $0.6 million and $7.8 million, respectively, of employment-related expense that was primarily associated with severance-related reorganization expenses.
  3. During year-to-date 2020, we incurred approximately $11.4 million of inventory write-offs for inventory with minor damage that we could not liquidate through our outlets due to store closures resulting from COVID-19.
  4. During year-to-date 2020, we incurred approximately $22.0 million of expense associated with store asset impairments due to the impact that COVID-19 had on our retail stores.
  5. During Q3 and year-to-date 2020, we recorded an approximate $0.6 million tax benefit resulting from a non-recurring adjustment to a deferred tax liability.
  6. During Q3 and year-to-date 2019, we recorded a net income tax expense of approximately $0.1 million, associated with tax legislation changes.

Return on Invested Capital (“ROIC”)

We believe ROIC is a useful financial measure for investors in evaluating the efficient and effective use of capital, and is an important component of long-term shareholder return. We define ROIC as non-GAAP net operating profit after tax (NOPAT), divided by our average invested capital. NOPAT is defined as non-GAAP operating income, plus rent expense, less estimated taxes at the company’s effective tax rate. Average invested capital is defined as the two-year average of total assets less current liabilities, plus capitalized leases, less cash in excess of $200 million.

ROIC is not a measure of financial performance under GAAP, and should be considered in addition to, and not as a substitute for other financial measures prepared in accordance with GAAP. Our method of determining ROIC may differ from other companies’ methods and therefore may not be comparable.

WSM-IR

Contacts

Julie Whalen EVP, Chief Financial Officer – (415) 616 8524
Elise Wang VP, Investor Relations – (415) 616 8571

Contacts

Julie Whalen EVP, Chief Financial Officer – (415) 616 8524
Elise Wang VP, Investor Relations – (415) 616 8571