PetSmart's revenue increased 4.3% in the first quarter (ended April 30, 2023) driven by a similar increase in its comparable sales. Merchandise sales, which make up about 90% of revenue, increased 4.2%. Driving this were higher sales in consumables (a non-discretionary category) due to pricing actions and an increase in online sales. Service sales increased 5.1%, reflecting an increase in average customer spend on services and transaction growth in grooming services. We forecast revenue will grow about 5% in 2023, with support from rebounding services and private-label product sales. Gross margins increased 110 basis points in the first quarter driven by a reduction in supply chain costs and pricing actions. We expect continued uplift in 2023 as supply chain costs
