David's Bridal to Spin Off AI Platform Pearl

David's Bridal plans to spin off its artificial intelligence platform, Pearl, into a standalone publicly traded company. The transaction, which is expected to close in the first half of 2027, targets a valuation of approximately $350 million. Under the terms of the agreement, Pearl will own the intellectual property of David's Bridal and license it back to the retail chain.

Pearl operates an agentic AI-powered wedding-planning platform, a digital content network, and tools for streamlining appointments. David's Bridal projects that Pearl will generate revenue exceeding $85 million in 2027 and achieve an EBITDA margin of more than 30% this year.

CEO Kelly Cook, who will lead Pearl after the spinoff, stated that the move allows the retail chain to focus on physical stores while the AI entity attracts talent to fuel growth. Cion Investment Corp., the asset manager that acquired David's Bridal to prevent a shutdown following its 2023 bankruptcy, has proposed a $25 million anchor investment in the new company.