Hide out, later, the man hides in (7)
I believe the answer is:
leather
'hide' is the definition.
(an animal hide)
'out later the man hides in' is the wordplay.
'out' indicates anagramming the letters.
'the man' becomes 'he' (he refers to a man).
'hides in' is an insertion indicator.
'later' is an anagram of 'leatr'.
'leatr' placed around 'he' is 'LEATHER'.
(Other definitions for leather that I've seen before include "Tanned animal skin" , "Animal skins" , "kid, say" , "polish" , "Dressed skin" .)