Peloton hit a milestone today, but instead of a shout out, badge, or free t-shirt, they celebrated with updated SEC filings and a big bump in stock prices.
Peloton announced this morning that the company hit 1 million active connected fitness subscribers. This number surpasses earlier estimates that they would have between 920,000 and 930,000 subscribers by the end of the fiscal year in June. Today’s SEC filing updates year-end estimates to be in the range of 1.04 to 1.05 million subscribers.
In response to the news, Peloton’s stock prices jumped almost 8% to close at a record-high $46.17 per share. While much of the fitness industry has struggled due to COVID-19 restrictions, the closure of gyms and limitations on gathering size have led to increased sales of the Peloton bike. According to last week’s earnings reports, bike sales have increased by 61% in the third quarter of the fiscal year, which ended March 31.
CEO John Foley expects the increased demand to continue through the summer as coronavirus restrictions remain in place throughout much of the US as people look for options to stay fit at home. Tread sales have been frozen since March because of difficulties with maintaining social distance during deliveries. Foley does not expect deliveries to resume before the end of the fiscal year.