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David's Bridal plans Pearl AI spinoff into public company
CNBC • • business
Key Points:
- David's Bridal plans to spin off its AI platform Pearl into a standalone publicly traded company targeting a $350 million valuation, with the deal expected to close in the first half of 2027.
- Pearl will own David's Bridal's intellectual property and focus on expanding its AI-powered wedding-planning services, while David's Bridal will concentrate on strengthening its physical retail operations.
- Pearl is projected to achieve over 30% EBITDA margin this year, exceed $85 million in revenue in 2027 with more than 100% growth, and maintain positive free cash flow and a debt-free status post-spinoff.
- Despite challenges in the AI and IPO markets, David's Bridal CEO Kelly Cook emphasizes Pearl's advantage of having an established customer base and proprietary data, positioning it as a modernized solution for wedding planning.
- David's Bridal has faced financial difficulties including two bankruptcy filings, but the spinoff and recent leadership changes aim to create a leaner, more focused company poised for strategic growth.
