Deutsche Post Stock: Shares Drop Amid Rising Customer Complaints

Deutsche Post's shares fell significantly during recent trading sessions, with the DHL Group stock dropping 2.3% to €42.07 on XETRA. Trading volume reached 1,134,710 shares as the stock touched a daily low of €41.97, well below its opening price of €43.17. Despite current declines, the stock remains 5.23% below its 52-week high of €44.27 recorded in March, while still maintaining a comfortable buffer above its January low of €33.03. Financial analysts maintain an average price target of €44.00 and forecast a dividend of €1.95 per share for the current year, up from €1.85 previously. The company's most recent financial results showed encouraging growth with earnings per share of €0.95, improving from €0.83 year-over-year, while revenue increased to €22.70 billion from €21.35 billion.

Service Quality Concerns May Impact Performance

The positive financial outlook faces headwinds from mounting customer dissatisfaction. The German Federal Network Agency reported a record 44,406 postal service complaints last year, a 7% increase over the previous period and nearly triple the number from 2021. Approximately 89% of these complaints targeted Deutsche Post and its DHL delivery services, primarily concerning delivery failures, unexpectedly closed branches, and insufficient mailbox collections. While the company emphasizes these complaints represent only 0.0003% of their 14 billion annual deliveries, the recently announced reduction of 8,000 positions in its German mail and package operations-more than 4% of its 187,000 workforce in this division-could further strain service quality. Additionally, a new postal law reform grants regulators enhanced enforcement powers, including the ability to impose fines for service failures, potentially affecting investor confidence and stock performance.