Clarus (CLAR) 2026年第三季度业绩电话会：利润率扩张，EBITDA指引上调

Clarus Corporation（NASDAQ: CLAR）公布2026年第三季度销售额实现增长、毛利率大幅扩张且调整后EBITDA有所改善。Black Diamond业务推动了整体增长，而Adventure业务则继续受到澳大利亚市场需求疲软的拖累。

核心要点

• 2026年第三季度销售额为7120万美元，上年同期为6930万美元。Outdoor业务营收增长12.4%，而Adventure业务营收下降20.2%。
• 报告毛利率从35.1%扩大至41.0%。业绩中包含约60万美元的关税追回收益。
• 剔除关税追回款后，Outdoor业务毛利率上升440个基点至40.4%，Adventure业务毛利率上升640个基点至39.6%。
• 合并调整后EBITDA为680万美元，对应利润率为9.6%。Outdoor业务贡献800万美元，Adventure业务贡献80万美元，调整后公司总部费用为200万美元。
• 管理层将全年调整后EBITDA指引从1200万至1300万美元上调至1500万至1700万美元，并通过提高下限将营收指引收窄至2.51亿至2.55亿美元。
• 截至本季度末，Clarus处于零债务状态，持有现金及现金等价物2080万美元。随着库存和应收账款恢复正常，管理层预计第四季度自由现金流将转正。

主要财务数据

业务及经营表现

Outdoor业务

Black Diamond第三季度营收增长12.4%，主要产品品类和各大区域市场均实现增长。其中，登山与攀登营收分别增长15.2%和15.1%，服装营收增长3.3%，连续第六个季度保持增长。

登山、攀登和服装三大品类占该业务分部营收的92%，合计增长13.1%。管理层将利润率的提升归因于库存结构改善、向高利润品类集中、减少折扣力度以及推进全价高端销售模式。

北美批发业务营收增长10.7%。北美数字化DTC（直接面向消费者）销售额增长15.7%，毛利率提升350个基点；同店零售销售额增长23.6%，毛利率提升580个基点。

欧洲批发业务按报告美元计增长13.1%，按固定汇率计增长10.3%。因Black Diamond削减了促销活动和低利润交易，欧洲数字化DTC销售额按固定汇率计增长0.7%。国际分销商营收增长31.9%。

随着公司对核心产品进行备货投资以支持业务增长和即时订单，Outdoor业务库存从6280万美元增至7380万美元。管理层预计，截至年底Outdoor业务库存将降至约6700万美元。

Adventure业务

Adventure业务营收下降20.2%，主要受澳大利亚消费环境疲软及需求转弱影响。管理层表示，尽管销售额下滑，但定价策略、产品及客户结构优化、减少促销以及成本控制措施对盈利能力起到了支撑作用。

美洲地区第三季度销售趋势有所改善。Clarus在2026年年内新增逾120家经销商，年内迄今贡献了约100万美元的增量营收。在拓展新客户以及荷兰配送中心的有力支撑下，欧洲、中东及非洲（EMEA）地区年内迄今营收增长27%。

管理层还重点提及了在日本市场的扩张，以及与宾利、捷豹路虎和梅赛德斯等欧洲汽车制造商建立的新合作关系。公司计划在2027年推出更多Adventure产品，包括P7平台式行李架、适配更多车型的配件以及DMK3 MAXTRAX脱困板。

战略评估

Clarus继续在杰富瑞担任财务顾问的协助下评估各项战略备选方案。潜在行动可能包括出售全部或部分业务，或开展其他战略性及财务交易。管理层表示，在适宜或需要进行进一步披露之前，不会发表更多评论。

管理层业绩指引

调整后的调整后EBITDA指引区间中值比此前1200万至1300万美元预期的中值高出约28%。管理层将此次上调主要归因于第三季度调整后EBITDA表现更为强劲，但部分被预期上升的公司总部费用所抵消。

随着Outdoor业务库存下降及应收账款恢复正常，管理层预计第四季度自由现金流将转为正值。

风险与关注事项

• Adventure业务在其本土市场澳大利亚仍面临消费需求疲软的困境。
• 管理层对消费者信心及更广泛的宏观经济形势依然保持谨慎。
• 东北部和中西部地区偏暖的厄尔尼诺冬季可能会拉低手套、保暖外衣及其他防寒用品的动销率。管理层表示，目前尚未发现订单取消或即时补单趋势发生改变。
• Outdoor业务正面临石油相关原材料、聚酯纤维、运费及金属领域的通胀压力。管理层预计，基础产品利润率的提升以及更趋有利的关税影响将在2027年抵消上述压力，但这一前景仍在一定程度上取决于油价和中东局势的发展。
• 第三季度自由现金流为负，主要由于Outdoor库存增加以及应收账款上升（包括回款速度放缓及9月份销售额激增）。

分析师问答要点

管理层表示，Outdoor在攀登、登山、服装和鞋类领域的新产品储备依然强劲。Magnetron登山扣回归后迅速售罄，部分主力服装系列也屡次售罄。公司已制定了延伸至2028年的三年期产品路线图。

国际分销商需求保持强劲，截至9月初即时订单规模已创历史新高。管理层认为中国和日本市场具有进一步增长潜力，而韩国仍是Black Diamond最大的国际市场之一。

针对2027年的盈利能力，管理层表示，原材料和运费的通胀应能被基础产品利润率的提高以及关税执行层面的变化所抵消。目前预计这些成本不会拉低2027年的利润率，甚至有望实现温和改善。

对于Adventure业务，在新品推出、适配车型增加、经销商网络拓展以及计划在年内晚些时候推出P7平台式行李架的支撑下，管理层预计其营收将在2027年恢复增长。不过，这仅是管理层的预期，而非正式的2027年业绩指引。

业绩电话会完整纪要

完整财报电话会议逐字稿

管理层陈述

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.

分析师问答

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.