클라루스(CLAR) 2026년 3분기 실적 발표 컨퍼런스 콜: 마진 확대, EBITDA 가이던스 상향

클라루스 코퍼레이션(NASDAQ: CLAR)이 2026년 3분기 매출 증가, 대폭적인 매출총이익률 확대 및 조정 EBITDA 개선을 기록했다고 발표했다. 블랙다이아몬드가 성장을 견인한 반면, 어드벤처 부문은 호주 시장의 수요 부진으로 계속 압박을 받았다.

핵심 요약

• 2026년 3분기 매출은 전년 동기의 6,930만 달러 대비 증가한 7,120만 달러를 기록했다. 아웃도어 부문 매출은 12.4% 증가한 반면, 어드벤처 부문 매출은 20.2% 감소했다.
• 보고 기준 매출총이익률은 35.1%에서 41.0%로 확대됐다. 실적에는 약 60만 달러의 관세 환급액이 포함됐다.
• 관세 환급액을 제외하면 아웃도어 부문 매출총이익률은 440bp 상승한 40.4%, 어드벤처 부문 매출총이익률은 640bp 상승한 39.6%를 기록했다.
• 연결 조정 EBITDA는 680만 달러로 9.6%의 마진율을 나타냈다. 아웃도어 부문이 800만 달러, 어드벤처 부문이 80만 달러를 창출했으며, 조정 본사 비용은 200만 달러였다.
• 경영진은 연간 조정 EBITDA 가이던스를 기존 1,200만~1,300만 달러에서 1,500만~1,700만 달러로 상향 조정했으며, 매출 가이던스는 하단을 높여 2억 5,100만~2억 5,500만 달러로 좁혔다.
• 클라루스는 부채 없이 현금 및 현금성 자산 2,080만 달러를 보유하며 3분기를 마감했다. 경영진은 재고와 매출채권이 정상화됨에 따라 4분기에는 잉여현금흐름이 흑자를 기록할 것으로 예상하고 있다.

주요 재무 데이터

사업 및 영업 실적

아웃도어

블랙다이아몬드의 3분기 매출은 주요 품목군과 지역 시장 전반의 성장에 힘입어 12.4% 증가했다. 마운틴 및 클라임 매출이 각각 15.2%, 15.1% 증가했으며, 의류는 3.3% 증가해 6개 분기 연속 성장세를 이어갔다.

마운틴, 클라임, 의류 품목군은 부문 매출의 92%를 차지했으며, 합산 기준으로 13.1% 성장했다. 경영진은 마진 개선의 요인으로 재고 건전성 개선, 고수익 품목군에 대한 집중도 확대, 할인 축소 및 정가 중심의 프리미엄 모델 정착을 꼽았다.

북미 도매 매출은 10.7% 증가했다. 북미 디지털 소비자 직접 판매(DTC) 매출은 15.7% 증가하고 매출총이익률이 350bp 개선됐으며, 동일 매장 기준 소매 매출은 23.6% 증가하고 매출총이익률이 580bp 상승했다.

EU 도매 매출은 보고 통화 기준 13.1%, 고정 환율 기준 10.3% 증가했다. EU 디지털 DTC 매출은 블랙다이아몬드가 프로모션과 수익성이 낮은 거래를 축소함에 따라 고정 환율 기준 0.7% 증가했다. 해외 유통사 매출은 31.9% 늘었다.

아웃도어 재고는 성장 및 즉시 납품 주문(at-once orders)을 지원하기 위해 회사가 핵심 제품에 투자하면서 6,280만 달러에서 7,380만 달러로 증가했다. 경영진은 아웃도어 재고가 연말까지 약 6,700만 달러 수준으로 감소할 것으로 예상하고 있다.

어드벤처

어드벤처 부문 매출은 주로 호주의 소비 여건 악화와 수요 둔화로 인해 20.2% 감소했다. 경영진은 매출 감소에도 불구하고 가격 책정, 제품 및 고객 믹스 개선, 프로모션 축소, 비용 통제가 수익성을 뒷받침했다고 밝혔다.

미주 지역은 3분기 중 매출 개선 추세를 나타냈다. 클라루스는 2026년 들어 120개 이상의 딜러를 추가해 연초 이후 누적 기준 약 100만 달러의 추가 매출을 창출했다. 유럽·중동·아프리카(EMEA) 매출은 신규 고객 확보와 네덜란드 물류 센터 운영에 힘입어 연초 대비 27% 증가했다.

경영진은 또한 일본 시장 확장과 벤틀리, 재규어 랜드로버, 메르세데스 등 유럽 완성차 업체들과의 신규 협력 관계를 강조했다. 회사는 P7 플랫폼 랙, 추가 차량용 피팅 제품, DMK3 맥스트랙스(MAXTRAX) 리커버리 보드를 포함해 2027년에 추가적인 어드벤처 제품을 출시할 계획이다.

전략적 검토

클라루스는 제프리스(Jefferies)를 재무 자문사로 두고 전략적 대안에 대한 검토를 지속하고 있다. 잠재적 조치로는 사업 전체 또는 일부 매각이나 기타 전략적·재무적 거래 등이 포함될 수 있다. 경영진은 추가 공시가 적절하거나 요구될 때까지 더 이상의 언급은 하지 않겠다고 밝혔다.

경영진 가이던스

수정된 조정 EBITDA 범위의 중간값은 기존 전망치인 1,200만~1,300만 달러의 중간값 대비 약 28% 높은 수준이다. 경영진은 예상 본사 비용 증가로 일부 상쇄되긴 했으나 주로 3분기 조정 EBITDA 호조에 힘입어 가이던스를 상향 조정했다고 설명했다.

경영진은 아웃도어 재고 감소와 매출채권 정상화에 힘입어 4분기 잉여현금흐름이 흑자로 돌아설 것으로 예상하고 있다.

리스크 및 주시 항목

• 어드벤처 부문은 본국 시장인 호주에서 지속적인 소비자 수요 부진에 직면해 있다.
• 경영진은 소비자 심리와 전반적인 거시경제 여건에 대해 여전히 신중한 입장을 유지하고 있다.
• 미국 북동부와 중서부의 엘니뇨로 인한 온화한 겨울 날씨는 장갑, 방한 아우터 및 기타 방한용품의 판매율을 저하시킬 수 있다. 다만 경영진은 주문 취소나 즉시 납품 주문 추세의 변화는 아직 나타나지 않았다고 밝혔다.
• 아웃도어 부문은 석유 관련 원료, 폴리에스터, 화물 운임, 금속 등에서 인플레이션 압력을 받고 있다. 경영진은 본원적인 제품 마진 개선과 우호적인 관세 효과가 2027년에 이러한 압력을 상쇄할 것으로 기대하고 있으나, 전망은 부분적으로 유가와 중동 정세에 계속 좌우될 것으로 보인다.
• 3분기 잉여현금흐름은 회수 지연과 9월 매출 증가에 따른 매출채권 증가 및 아웃도어 재고 확대로 인해 마이너스를 기록했다.

애널리스트 질의응답 핵심 내용

경영진은 클라이밍, 마운틴, 의류, 신발 전반에 걸친 아웃도어 부문의 신제품 파이프라인이 견고하게 유지되고 있다고 밝혔다. 재출시된 마그네트론(Magnetron) 카라비너가 완판되었으며, 일부 의류 대표 라인업 역시 잇달아 품절을 기록했다. 회사는 2028년까지 이어지는 3개년 제품 로드맵을 보유하고 있다.

해외 유통사 수요는 강세를 이어갔으며, 9월 초 기준 즉시 납품 주문은 사상 최고 수준에 달했다. 경영진은 중국과 일본에서 추가적인 성장 잠재력을 보고 있으며, 한국은 여전히 블랙다이아몬드의 최대 해외 시장 중 하나다.

2027년 수익성과 관련해 경영진은 원자재 및 운임 인플레이션이 본원적인 제품 마진 개선과 관세 시행 방식의 변화를 통해 상쇄될 것으로 본다고 밝혔다. 현재로서는 이러한 비용이 2027년 마진을 낮출 것으로 예상하지 않으며, 소폭의 상승 가능성도 보고 있다.

어드벤처 부문의 경우 경영진은 신제품, 차량용 피팅 제품 확대, 딜러망 확대, 연말 출시 예정인 P7 플랫폼 랙에 힘입어 2027년에 매출이 다시 성장세로 전환될 것으로 기대하고 있다. 다만 이는 2027년 공식 가이던스가 아닌 경영진의 기대치에 해당한다.

실적 발표 콘퍼런스콜 전문

전체 실적 발표 컨퍼런스 콜 녹취록

경영진 발표

Operator

Good afternoon, everyone, and thank you for participating in today's conference call to discuss Clarus Corporation's financial results for the third quarter ended September 30, 2026. Joining us today are Clarus Corporation's Executive Chairman, Warren Kanders; CFO, Mike Yates, President of Black Diamond Equipment, Neil Fis, and the company's external Director of Investor Relations, Mac Berketz.

Following the remarks, we'll open the call for your questions. Before we go further, I would like to turn the call over to Mr. Berkowitz, as he reads the company's safe harbor statement within the meaning of the Private Securities Litigation Reform Act of 1995 and that provides important cautions regarding forward-looking statements. Matt, please go ahead.

Mathew Hayward

Thank you. Before we begin, I'd like to remind everyone that during today's call, we will be making several forward-looking statements, and we will make these statements under the safe harbor provisions of the Private Securities Litigation Reform Act. These forward-looking statements reflect our best estimates and assumptions based on our understanding of information known to us today. These forward-looking statements are subject to potential risks and uncertainties and that could cause the actual results of operations or financial condition of Claris Corporation to differ materially from those expressed or implied by the forward-looking statements.

More information on potential factors that could affect the company's operating and financial results is included from time to time in the company's public reports filed with the SEC. During today's call, we will refer to certain non-GAAP financial measures, which should be considered in addition to and not as a substitute for our results reported in accordance with GAAP. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are included in our earnings press release issued earlier today, which was furnished as an exhibit to our current report on Form 8-K filed with the SEC and is also available on the SEC Filings section of our website at www.clariscorp.com.

I would like to remind everyone this call will be available for replay starting at 7:00 p.m. Eastern Time tonight. A webcast replay will also be available via the link provided in today's press release as well as on the company's website.

Now I'd like to turn the call over to Clarus' Executive Chairman, Warren Kanders.

Warren Kanders

Good afternoon, and thank you for joining Clarus' earnings call to review our results for the third quarter. I am joined today by our Chief Financial Officer, Mike Yates, who will provide a financial update, including Adventure segment performance as well as Neil Fiske, who will discuss our Outdoor segment. .

We delivered strong third quarter results, reflecting the continued progress we are making to strengthen our businesses and drive sustainable, profitable growth. Our efforts to simplify operations sharpen our product focus and improve cost efficiency are translating into meaningful financial improvements, including consolidated gross margin of 41%, up from 35.1% a year ago. And significant year-over-year growth in net income and adjusted EBITDA.

Mike will discuss IPA tariff recovery we recognized during the quarter. Excluding that benefit, we believe that the underlying improvement across both segments remain substantial.

Building on the momentum we saw in the first half of the year, Black Diamond generated double-digit revenue growth in Q3 with strength across major product categories and geographic markets. Importantly, this growth was accompanied by substantial margin expansion reflecting our ongoing focus on higher volume, higher margin products, healthier inventory and a more disciplined approach to promotional activity. These results underscore the strength of the Black Diamond brand and the effectiveness of our strategy.

In Adventure, third quarter sales declined primarily reflecting a challenging consumer environment in Australia. However, we continue to make meaningful progress repositioning the business. And excluding the tariff refund, gross margin improved 640 basis points year-over-year. Overall, we believe the Adventure business is in a fundamentally stronger position than it was 18 months ago. We have simplified our operating footprint, improved our cost structure, strengthened key customer relationships and expanded our international distribution capabilities.

With signs of momentum in the Americas and continued growth opportunities internationally, our focus remains on maintaining our margin improvements, exercising cost discipline and positioning the business to capitalize on our recovery in demand.

Turning to the guidance, supported by our strong performance through the first 9 months of the year, and constructive outlook for Q4, we are raising the low end of our full year revenue guidance and raising our adjusted EBITDA outlook. We now expect 2026 adjusted EBITDA to range between approximately $15 million and $17 million. At the midpoint, this represents an increase of approximately 28% versus our prior adjusted EBITDA forecast of $12 million to $13 million.

Before passing it over to Neil, I will briefly touch on the review of strategic alternatives we announced in May. We continue to explore a range of potential actions aimed at unlocking value more effectively than the market is recognizing today. We have retained Jefferies as our financial adviser to assist in this process. Potential alternatives could include the sale of all or part of the business or other strategic or financial transactions involving the company.

Please note that we will not be answering any questions or commenting further on our strategic review process until additional disclosure is appropriate or required.

With that, thank you for being with us today, and I will call -- I will turn the call over to Neil Fiske.

McNeil Fiske

Thanks, Warren. Turning to Slide 6. I will review the Outdoor segment's third quarter performance and our expectations heading into the remainder of 2026. Overall, Black Diamond had a great Q3 with revenue, margin and EBITDA all well ahead of prior year as our strategy of simplification, focus and business reshaping continues to pay off and build momentum. Total revenues for the quarter were up 12.4%, reflecting accelerating growth in all of our regions and across our major categories.

Our business categories of mountain climb and apparel drove 92% of total revenues and grew 13.1%. As I said on the last call, the core of the business is healthy and growing. It's great to see the momentum from a strong Q2 build into an even better Q3. For the quarter, Mountain was ahead 15.2% versus prior year and saw a nice lift from our collaboration with Nordic footwear, which launched at the UTMB event in Semanie in August.

The client category posted another strong quarter, growing 15.1%. Apparel was up 3.3% for the quarter, the sixth consecutive quarter of growth. Gross margin is also a very positive story for the quarter. Excluding the small amount of tariff refunds, about $70,000 in the quarter, we received in Q3, gross margin came in at 40.4%, up 440 basis points over the prior year period. The strong year-over-year improvement reflects the progress we've made and the quality of our inventory, our focus on our most profitable categories, less discounting and a more full price premium business model.

Operating expenses, including restructuring, transaction costs and legal and regulatory matter expenses were up 9.6% for the quarter, reflecting the cost of the Salt Lake distribution center move along with other factors. Restructuring expenses were $200,000. Outdoor adjusted EBITDA for the quarter came in at $8 million, up 8.7% versus prior period. Inventory ended the quarter at $73.8 million versus $62.8 million in the prior period. This was a deliberate effort to invest in growth and identify the potential upside in our key categories and style franchises.

We have seen the benefit of this investment in the strong growth for the quarter and historically high sales from at-once orders also known as ASAP orders. From here, we'll have a more accurate view of the sales potential and we'll begin bringing the inventory balance down. We expect to end the year around $67 million in inventory with less discounted merchandise and concentration in our proven styles.

Now turning to results by region and channel. North America wholesale grew 10.7%. North America digital D2C, which represents 14.3% of the region's revenue was up 15.7% on the top line, with much healthier margins and less discounting, resulting in a 350 basis point improvement in gross margin for the channel. North America retail comp store sales were up 23.6% with gross margins lifting 580 basis points. EU wholesale was up 13.1% in dollars and 10.3% in constant currency.

EU digital D2C which represents 5.1% of the region's revenue was up 0.7% in constant currency as we pulled back on both promotional activity and less profitable transactions. Our international distributor channel was up 31.9% for the quarter.

Looking ahead, we are in a good position heading into Q4 and on track to achieve or exceed our goals. We feel good about our progress, our momentum and our results. That said, we remain mindful of cautious consumer sentiment and potential adverse macro factors as well as the potential of a warmer El Nino winter on cold weather categories. Once again, I'd like to congratulate and thank our teams around the world for all their hard work, passion and skill in driving these results.

With that, I'll turn it over to our CFO, Mike Yates.

Michael J. Yates

Thank you, Neil, and good afternoon, everyone. On today's call, I'll provide an update on the Adventure segment and then conclude with a summary of our Q3 financial results followed by the Q&A session. Starting with Adventure on Slide 7. Third quarter results reflected continued pressure on the top line, particularly in our home market in Australia were challenging consumer conditions and softer demand across key product categories continue to weigh on the market. However, we are encouraged by the progress we are making to strengthen the underlying business with significant improvements in gross margin and cost discipline, enabling us to maintain profitability despite lower sales volumes.

Excluding the $0.5 million tariff refund at adventure, Q3 adjusted EBITDA was in line with Q3 2025 adjusted EBITDA on 20% less revenue. Gross margin improved 640 basis points year-over-year, excluding the tariff refund, reflecting the benefits of pricing actions and improved customer and product mix and reduced promotional activity. We are also navigating the impact of changes to our distribution network as we prioritize stronger, more profitable customer relationships. While these factors have weighed on sales, we continue to make progress strengthening our position with key retail partners, including Super Cheap Auto in Australia, where we were recently recognized as the most engaged trade partner.

In the Americas, we are beginning to see the benefits of our commercial initiatives with an improving sales trend during the third quarter growth in Rocky Mount, extracts and continued expansion of our dealer network are helping offset softness among certain larger accounts. We have added more than 120 dealers this year generating approximately $1 million in incremental year-to-date revenue. We are particularly encouraged by the performance of Rina Rack in the U.S., where we believe margins have improved significantly because of our pricing and channel initiatives.

Our international expansion efforts also continued to gain traction. EMEA revenue increased 27% year-to-date, supported by new customer and dealer relationships and improved distribution capabilities following the opening of our new facility in the Netherlands. In Japan, our decision to expand beyond an exclusive distribution arrangement has contributed to strong growth. We are also making encouraging progress with European automotive OEMs, including new relationships with Bentley Force, Jaguar, Land Rover and Mercedes, which we believe can support incremental growth in the years ahead.

At the same time, we continue to invest selectively in product innovation to position Adventure for the next cycle. The recently launched Max Trax recovery shovel has been well received, and our acquisition of ONWARD has expanded our portfolio of high-margin vehicle accessories. Looking ahead to 2027, we have an exciting pipeline of new products across our brands, including the next generation of our platform RAC, the P7, expanded vehicle fitments and a new MaxTrax recovery Board, DMK3.

With that, now let me turn to the consolidated and segment financial review on Slide 8. The Consolidated Claris third quarter sales were $71.2 million compared to $69.3 million in the third quarter of the prior year. On a reported basis, from a segment perspective, outdoor was up 12.4% and adventure was down 20.2%. Sales were up in nearly every market for outdoor, as Neil mentioned. And the weak business at Adventure was primarily in the Australian markets for Rhino Rec and MaxTrax.

The consolidated reported gross margin rate in the third quarter was 41.0% and compared to 35.1% in the prior year quarter. The gross profit includes a benefit of $600,000 from the recovery of EPA tariffs in the third quarter of 2026. The vast majority of these tariff refunds in the third quarter were at adventure, specifically venture received $495,000 and outdoor received approximately $70,000. Gross margins, excluding the tariff benefit for the 2 segments are as follows: Outdoor gross margins were 40.4%, up 440 basis points compared to the third quarter in the prior year and adventure gross margins were 39.6%, up 640 basis points compared to the third quarter in the prior year.

Gross margin growth has been realized through pricing, and our simplification strategy, along with better product and customer mix. Third quarter consolidated selling, general and administrative expenses were $25.3 million compared to $26.2 million in the same year ago quarter. Third quarter 2026 expenses reflect lower outside services and employee-related costs at the corporate level and other expense reduction initiatives at adventure to manage costs, offset by a slight increase at the Outdoor segment, primarily due to higher selling expenses.

Adjusted EBITDA in the third quarter was $6.8 million on a consolidated basis or an adjusted EBITDA margin of 9.6%. The third quarter adjusted EBITDA by segment was $800,000 in adventure and $8 million at Outdoor. Adjusted corporate costs were $2 million in the third quarter.

Let me shift over to liquidity and the balance sheet. Free cash flow, defined as net cash provided by operating activities less capital expenditures for the third quarter of 2026 was a $7.4 million for outflow compared to a $7 million outflow for the 3 months ended September 30, 2025. Despite the significant improvements in net income in the third quarter, the negative free cash flow in the quarter was due to increased working capital needs, specifically an increase in inventory at outdoor that Neil mentioned to fulfill ASAP orders.

And higher accounts receivable driven by slower collections and much higher sales at the Outdoor segment in the month of September 2026 compared to the month of September 2025. We do expect free cash flow to be positive in the fourth quarter as inventory and accounts receivable normalize. Neil mentioned, we expect inventory to reduce to $67 million at outdoor by the end of the fourth quarter. At September 30, 2026, total debt was 0. At September 30, 2026, cash and cash equivalents were $20.8 million compared to $36.7 million at December 31, 2025.

Moving on to our 2026 outlook on Slide 9. We now expect fiscal year 2026 sales to range between $251 million and $255 million. And we now expect full year revenue and adventure to be approximately $65 million and full year outdoor revenue to be approximately $188 million. We have revised our full year 2026 adjusted EBITDA to be in the range of $15 million to $17 million or an adjusted EBITDA margin of 6.3% at the midpoint of our revenue and adjusted EBITDA ranges.

The revision to our full year adjusted EBITDA guidance compared to our prior guidance of $12 million to $13 million is as follows: Assuming the midpoint of the 2 guides, the primary difference between the $12.5 million and $16 million in the third quarter beat in adjusted EBITDA compared to our prior guidance, partially offset by corporate cost now expected to be $9 million rather than $8 million a quarter ago.

Turning to the fourth quarter. Sales are expected to range between $62 million and $66 million and at the midpoint of our full year guidance of $16 million adjusted EBITDA. Adjusted EBITDA is expected to be approximately $3 million for the fourth quarter of 2026. Let me give an update on legal. I'd like to provide an update on the company's Section 16B litigation with Half Trading LLC. In the company's action against HapTrading LLC and Mr. rich Padia for disgorgement of short-swing profits under Section 16B, the District Court granted summary judgment to the defendants on March 14, 2025, based on the market-making exemption under Section 16B. The company's timely appeal and appeal was argued before the Second Circuit court on February 12, 2026. The SEC has declined the court's invitation to sit an Amicus brief and the company is still waiting on the second court's decision.

In closing, we are focused on unlocking the trite value of our outdoor and adventure segment and maximizing long-term value for our shareholders. with more focused businesses, a simplified operating structure, a debt-free balance sheet, we believe we have the foundation in place to drive sustainable profitable growth.

At this point, operator, we're ready to take any questions.

Operator

[Operator Instructions] Our first question comes from the line of Mark Smith of Lake Street.

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Mark Smith

I wanted to ask just within outdoor first, I know that you guys have focused on simplification in the business. But I'm curious kind of how sales of new products have been trending any bump that you've gotten from new products and kind of how your pipeline and new products looks?

Unknown Executive

I can take that. Thanks, Mark. I'd say, overall, we're quite pleased with our new product introductions and what we've got in the pipeline across all the categories. Klein, Mountain apparel. We've had some great successes in the quarter, the collaboration launch with Nora, where we had special tracking poles, special mountain running pack, terabit was far away above our expectations in Nordic. But just 1 example of very creative collaborations driving innovation. Another example, we brought back kind of by popular demand, our magnetron carabiner was a huge launch sold out immediately. We took back orders got we play in and sold out again. So that's a good example in climb.

And in apparel, we've got a number of our franchise styles like the dirt bag pant that have sold out multiple times, and we're investing in inventory really to find out how high is high on some of these key franchise styles. So I think we're hitting it. You never bat 1,000, as you know, on NPI. But across the major business units with a strong success. And even in footwear, where we've narrowed our focus to rock shoes, our momentum in Camso, which we introduced this year. is doing very well.

So I'm very happy with our new product introductions. We have an amazing design and engineering team, good merchants, and I'm really pleased with the progress. And I think that will sustain itself as we look into what we've got on deck for '27 and '28 we plan pretty far out, as you know, in this business, and we've got a really good 3-year product road map. And I think it's going to continue to look at the business and also hopefully, be accretive to our gross margin profile.

Mark Smith

And then sticking in outdoors, I wanted to ask just about kind of the international sales. I know that you guys called out Europe and quantified kind of some growth there. Here's kind of other regions that may be doing well or if there's anywhere that maybe is a drag? .

Unknown Executive

Yes -- is that for outdoor for adventure outdoor primarily yes. So as you know, we've basically have 3 regions: North America, Europe and then our international distributor group, which surfaces pretty much rest of world. And that division, IGD is having a great year. and we're seeing really strong growth and ahead of our expectations there. Importantly, 1 of the things I'd look at as kind of a immediate short-term leading indicator of the business, is how strong the at-once order businesses and it's strong across all regions, by the way, which is 1 of the things that gives us confidence going into Q4.

But if I look in particular at IGD, I think by the beginning of September, we had done more at once orders than we've ever done in any other year. And so that just tells you sort of the strength of the demand that we're seeing. And also, as Mike mentioned, the payback that we're getting from investing a little bit more inventory in our best styles so that we can fulfill that at once demand.

But I think as an indicator of strength in in the business and IGD in particular, that's a pretty good one. And also looking forward to the order book for '27 and the kind of response we've gotten to the product for those rest of world markets, we feel very good about that. There are some places that I think we need to accelerate a little bit more than we have where we have a great distributor in Korea, 1 of our biggest invested international markets. China is growing, but probably under -- its potential, just given what we've seen with the success of other outdoor brands and we'd like to accelerate even faster in China.

And in Japan, we have changed over our distributor really a succession plan from 1 -- the owner of the prior distributor to his management team as he retired. And I think Japan has a lot more upside for us than what we're seeing today. So business is strong. ASAP's best indicator of that. But I think we're just at the beginning of realizing a lot of growth in those markets.

Michael J. Yates

Mark, just to reiterate what Neil shared in the prepared remarks, North American wholesale is up over 10%. Our North American DTC was up over 15%. EU wholesale was up over 13% and in IGD, our international business was up over 31%. So it was -- as I summarized that nearly in every market, we were up across the BB business.

Matt Koranda

And then Mike, can you just clarify and maybe repeat, I apologize that I missed it. I think that you gave some of the sales guidance for outdoor and adventure ?

Michael J. Yates

Yes, I did. I did. For the full year, we raised the low end of our range to $251 into the high end of $255 million for the consolidated business. But for -- by segment, we said that kind of breaks down at the midpoint of $188 million for the outdoor business and $65 million for the Inventure business. The $188 million and the $55 million kind of hits you right in that midpoint of the $251 to $2.55 or at $188 million and $65 million is $253 million. .

Operator

Our next question comes from the line of Laurent Vasilescu of BNP Paribas.

Laurent Vasilescu

I wanted to follow up. I think, Neil, you made a point about El Nino. It's obviously a pressing concern out there for the overall industry. I'm curious to know like if you're seeing any order book cancellations or if you're seeing anything on that front with regards to variability for the fourth quarter? .

Unknown Executive

Don't change yet, Lauren, in order book or even the pace of at once. But -- but I think it's too early to tell. We'll know more in late November and December. The thing I think we're cautious about that El Nino could cut both ways, we could get better snow in the Rocky Mountain West and West Coast ski areas, that would be a benefit. But the thing to watch out for is just if it's a warmer winter in the Northeast and Midwest and areas of a lot of population density. Those are typically good markets for cold weather accessories like gloves and an outerwear insulation. And if it's a warm winter there, we could see some slower sell-through and less ASAP. And we could see some impact on our D2C way too early to tell. But we just -- we look at that weather effect is kind of having both a positive and a negative. And I just wanted to call that out for investors to be cognizant of.

Laurent Vasilescu

As we look out to '27, I know you're not prepared to comment about '27 guidance. But I think you talked about this last quarter about raw material inflation now that it's 90 days later. Just curious on updated thoughts there, like should we assume kind of like a mid-single-digit increase in cost of goods sold just from raw materials, particularly from oil-based derivatives. Any color there would be super helpful?

McNeil Fiske

Yes. There are 2 things that sort of work against each other and to some extent, offset each other. So there's no question we're seeing some inflationary pressure in material feedstocks, oil, polyester, turning into polyester cost and loan costs, higher freight costs and even impacting the metals market. So that's out there. That, of course, is very much linked to the price of oil and the outcome of the situation in the Middle East. So that's a bit of a headwind for us in '27.

On the flip side, we are we have some improvement in our underlying product margins from the work that we've done. And if you look on a like-for-like basis on tariffs, the tariffs at the beginning of the year and the tariffs now. We have some favorability from the way the latest tariffs have been implemented, that hopefully can offset those raw material costs. And so we don't think there will be a drag on margins in '27. If anything, there might be a little bit of upside as we look ahead.

Laurent Vasilescu

Very helpful. And then the last question here is a broader question on the venture side. I think venture was down about 20% this quarter. And I appreciate, Mike, that you gave us color on the segments for the full year. When do you expect a rebasing of that business so that you can return to growth? I understand Australia market is difficult, but I'm just curious to know face in the macro, when do you think the work that you've done leads to growth going forward for this segment?

Michael J. Yates

Lauren, great question. I appreciate that. Obviously, we are very happy with the work we've done on what we can control, specifically cost. You can see the improvement in gross margins during the quarter. We think that built into our business now, right? We have better terms, better pricing, better relationships with customers, et cetera. So that gross margin, we think, is real and that should carry forward into future years. Same with on our SG&A side, we've controlled our cost. Cost was down, as I mentioned, at adventure year-over-year.

So we've positioned the company, the Inventure business from a cost standpoint to really perform once growth comes back, right? And so what are we doing around growth? We talked about some of the new products. We have a litany of new products that we are teeing up to come out across 2027 that are actually being -- some of them were being introduced this week at the CEMA automotive Show out in Las Vegas. -- our teams out there sharing some of that. But I mentioned 1 of them on the call, the new MAX track Board that nets with a shovel, that's been tremendously successful.

So lots of efforts around NPI, lots of effort around fitments to make our own luck essentially on the sales side. Obviously, we are defending the core and the big product that we expect to introduce next year. And when I say to fund the core, that's the Australian business, the new P7 platform rack. That's expected to come out late in 2027, I think, in the third quarter. So if all that comes to -- if we can continue to drive the gross margin, continue to manage our SG&A costs with the NPI that is teed up, I would expect the business to grow in 2027.

Operator

Thank you, Laurent. Thank you. I'm showing no further questions at this time. I would now like to turn it back to Mike Gates for closing remarks.

Michael J. Yates

Thank you. I want to thank everyone very much for their interest in attending the call this afternoon and your continued support and interest in Claris. We look forward to updating you on our results again next quarter. Thank you again, everyone. .

Operator

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.