UPDATE 3-Under Armour profit higher, raises 2011 view

* Q4 EPS 44 cents vs Street view 37 cents

* Sales up 36 pct to $301.2 mln vs Street view $271.6 mln

* Raises 2011 revenue forecast

* Says will make "selective price increases" in 2011

* Shares up almost 4 pct in light premarket trading (Adds analyst, company comments, stock action, other details)

By Ben Klayman

DETROIT, Jan 27 (Reuters) - Sportswear maker Under Armour Inc (UA.N) posted a higher-than-expected quarterly profit on strong sales at its stores and online and raised its 2011 revenue forecast, sending shares up almost 4 percent.

Under Armour also said it would take "selective price increases" this year to offset higher sourcing costs, echoing recent comments by larger rival Nike Inc. (NKE.N)

"The numbers were significantly better than I expected, pretty much across the board on the top line," said Sterne Agee analyst Sam Poser, who has a "neutral" rating on the stock. "It looks like most of it was driven off of the direct-to-consumer business, both Internet and their retail stores."

The company, which makes products touted for pulling sweat away from the body, has made efforts to reach more women shoppers and cater to a wider swath of athletes.

Last month, Nike posted a stronger-than-expected quarterly profit, but its future orders data was weaker than many on Wall Street had forecast. It also said it might undertake targeted price increases to help offset rising cotton, labor and transportation costs. [ID:nN21269397]

Under Armour's net income in the fourth quarter rose 51 percent to $22.9 million, or 44 cents a share, from $15.2 million or 30 cents a share in the year-earlier quarter. That was 7 cents better than analysts polled by Thomson Reuters I/B/E/S had expected.

The company said a lower-than-expected tax rate in the quarter boosted results by about 4 cents a share.

Under Armour's sales rose 36 percent to $301.2 million, topping the $271.6 million analysts had expected.

In the fourth quarter, Under Armour's revenue for apparel, which makes up more than 80 percent of the total, rose 32 percent, driven by strong growth across the men's, women's and youth segments.

Under Armour said gross margins in the fourth quarter rose to 51.7 percent from 51.2 percent last year due to more higher-margin direct-to-consumer sales and lower footwear markdowns.

The company said it now expects net revenue in 2011 to grow 25 to 27 percent, up from its previous outlook for 20 percent to 25 percent growth.

It expects 2011 revenue in the range of $1.33 billion to $1.35 billion, above the $1.28 billion analysts had forecast.

Under Armour also said it expects operating income in 2011 in the range of $143 million to $147 million.

Under Armour said higher cotton and Chinese labor costs would be relatively minimal in 2011 and it expected product cost inflation in the mid-single-digits range starting in the second half of the year.

Shares of Under Armour were up 3.9 percent at $56.00 in light premarket trading compared with Wednesday's closing price of $53.88 on the New York Stock Exchange. (Reporting by Ben Klayman; Editing by Derek Caney, Maureen Bavdek and Matthew Lewis)