National Lumber Posts Net Loss for First Quarter

National Lumber & Supply Inc., a chain of home improvement centers based in Fountain Valley, reported a net loss of $582,000 for its fiscal 1987 first quarter ended April 30, contrasted with net income of $176,791 for the same period in the previous fiscal year. However, first quarter revenues were $32.6 million, up from $31.4 million.

National Lumber President Melvin Jaffee said the company had anticipated the first quarter loss, which he blamed primarily on costs associated with opening four new home centers late last year in Encinitas, San Bernardino, Fontana and Fullerton.

Other factors that helped to put the company in the red, he said, were a 44% increase in net advertising expenses and a 120% increase in insurance costs. Jaffee added that he expects improved financial results in the second quarter. With no further stores set to open this year, he said, “(we will be) concentrating all our energies on increasing sales and profitability.”