David’s Bridal has tapped a new CEO to lead the company as it looks to transform from a legacy retailer into a bridal media powerhouse nearly two years after emerging from its second bankruptcy.
Kelly Cook, the current president of brand, technology and finance, will take over as David’s CEO on April 1 and will become just the second woman in the company’s 75-year history to hold its top job.
As part of Cook’s appointment as chief executive, current CEO Jim Marcum will become David’s executive chairman, in addition to his current role as chairman of the board.
In an interview with CNBC, Cook outlined her vision for the company and the work she’s doing to bring David’s into the future. At the heart of the new strategy is positioning David’s as a media company that uses content to bring customers in and then uses that data to drive advertising revenue for its newly launched Pearl Media Network. On the retail side of the business, David’s plans to build out an online marketplace and become an asset-lite business that relies on a network of vendors to create products and fulfill orders.
“So we already sell about a third of the wedding dresses in the United States … the bridal dress is what we do, it’s who we are, but we are expanding the shopping side of it to include more categories that she’s asking for, men’s suits, men’s wear, rentals, swimwear, occasion dresses, party dresses,” said Cook. “All of that is being added through a drop ship marketplace model and that allows us to add vendors very, very quickly, it allows us to scale very, very quickly … versus in the past, where we would have to build more stores and add more square footage.”
David’s efforts to transform come nearly two years after it emerged from a pandemic-induced bankruptcy that nearly ended its business. It managed to keep around 200 stores open after receiving a no-cash bid from asset manager Cion Investment Corp. – the only firm willing to acquire David’s stores and inventory, not just its brand name and intellectual property, reports said previously.
Now, David’s is attracting a new slate of investors and said Tuesday it has received capital commitments from a number of firms, including private equity platforms and those that offer debt. It declined to name the firms, but said the new capital will be used to fuel the company’s transformation.
Cook said the company was able to woo investors by touting its new take on bridal retail. Currently, David’s manufactures about 90% to 95% of its inventory, but it’s aiming to get the business down to a 50/50 split between its own manufacturing and outside vendors, said Cook.
This transition into an asset-lite model will help shield the company from the existential risks that pushed it into bankruptcy twice before – inventory and store leases – which can be some of the biggest burdens on a company’s balance sheet.
Plus, it’s following behind the likes of Walmart in its expansion into advertising, or so-called retail media, which is a way for relevant brands to advertise to consumers directly on a retailer’s website or in its stores, among other places.
Retail media is a novel way for companies to generate new streams of revenue at a time when specialty retail has never been harder to get right. Rising competition, uncertain demand and the breakneck speed that trends move at these days has forced legacy players to get more creative if they want to survive long term.
The company says that it serves 90% of the overall bridal market but only sells about a third of all wedding dresses in the U.S., showing it still has a wide gap to close and a lot of changes to implement before it can start growing. It will also need to carefully manage its debt and ensure these new strategies pay off to avoid finding itself in bankruptcy court for a third time.
David’s is a private company and doesn’t disclose its revenue or profit, but Cook said the company is planning to scale “in a way that drives profitability as fast as possible.”
“It’s definitely a new era of David, for sure,” said Cook. “The brides are evolving, and we’re evolving with her.”
