Melville Shoe Stock Price After October 1929 Crash and Great Depression
Melville Shoe Corporation of Harrison, New York was organized in 1894 and incorporated in 1916. From its inception through 1923 the company never had an unprofitable year, and paid dividends on preferred stock from 1916 to 1923.
During the period from 1925 – 1928 the number of Melville stores increased by 184% and net income expanded 360%. In the first three months of 1929 the chain store realized a 34% increase in sales over 1928. In February 1930 the “Melville Shoe Corporation” controlled 460 Thom McAn, Rival, and John Ward stores in thirty-nine of the United States.
Right before the October 28, 1929 Black Monday and October 29, 1929 Black Tuesday stock market crash, Melville Shoe Corp. stock had been trading at $50.00 per share on the New York Stock Exchange. Melville Shoe stock closed on August 11, 1932 at $11.75 per share and hit a 1932 low of $8.00 per share.
The period 1932 to 1954 was better for companies that made things than sold them to consumers. After all, between the Great Depression and World War II people either had no money or there was nothing to buy. That explains why there are so few retailers who performed well during the Great Depression. But Melville, famous for Thom McAn shoe stores, shod a generation of feet in uncomfortable, affordable shoes.
Melville Shoe Corp had a cumulative total return of 7,791% during the 1932 to 1954 period and is now part of CVS Pharmacy Drug Store.
Tags: August 11 1932, Black Monday, Black Tuesday, Cumulative Total Return, CVS Pharmacy Drug Store, Dividends, Great Depression, Melville Shoe, Melville Stores, October 28 1929, October 29 1929, Preferred Stock