David's Bridal to Spin Off AI Platform Pearl in Planned $350 Million IPO
David's Bridal has filed a nonbinding letter of intent to spin off its artificial intelligence wedding-planning platform, Pearl, into a standalone publicly traded company. The spinoff aims for a valuation of approximately $350 million and is expected to close in the first half of 2027. Under the proposed structure, Pearl will own David's Bridal's intellectual property and license it back to the retail chain. The move is designed to allow both entities to pursue specialized growth: Pearl will focus on scaling its high-margin AI services, while David's Bridal focuses on its physical retail presence. Pearl projects revenue exceeding $85 million in 2027 with an EBITDA margin above 30%. Despite a challenging IPO market for AI and consumer stocks, leadership believes Pearl's established customer base provides a significant competitive advantage.
Topics: AI platform corporate restructuring IPO planning spin-off