UAA Under Armour Inc

Under Armour Inc. said its third-quarter profit rose 28% as the athletic gear maker expanded its market share and benefited from sharply higher footwear sales.

During the back-to-school period, Under Armour ramped up its sneaker business and nearly doubled its share of the footwear market, amassing 8.2% of the market for the 13 weeks ended Oct. 1, up from 4.6% a year ago, according to industry tracker SportScanInfo.

The company has also moved to diversify its portfolio, launching its first foray into the high-end clothing space during Fashion Week in September.

Apparel sales increased 18% to $1.02 billion for the quarter, led by growth in men's training, women's training, golf and team sports, while footwear sales increased 42% to $278.8 million driven by strong growth in running and basketball.

Direct-to-consumer revenue grew 29% from a year earlier as the company launched three new e-commerce websites during the quarter.

The Baltimore-based company also capitalized on its sponsorship of the Olympic Games in Rio to extend its reach to new customers, Chief Executive Kevin Plank said.

Over all for the quarter, Under Armour reported a profit of $128.2 million, or 29 cents a share, up from $100.5 million, or 23 cents, a year earlier. Revenue jumped 22% to $1.47 billion.

Analysts polled by Thomson Reuters had forecast earnings of 25 cents on $1.45 billion in revenue.

Gross margin fell to 47.5% compared with 48.8% last year, due in part to increased promotions.

Shares were flat in premarket trading.

Write to Imani Moise at imani.moise@wsj.com

(END) Dow Jones Newswires

October 25, 2016 08:35 ET (12:35 GMT)

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