By Sara Germano 

Adidas AG lost its No. 2 position in the ultracompetitive U.S. sportswear market last year to ascendant Under Armour Inc., which increased sales in both apparel and footwear at its German rival's expense.

According to data released by Sterne Agee and SportScanInfo Thursday, Under Armour recorded $2.6 billion in U.S. footwear and apparel sales for the 11 months through Dec. 31, compared with $1.6 billion for Adidas. Both were far behind Nike Inc., which tallied $11.8 billion of sales in the region for the period, excluding $2.5 billion of Jordan footwear sales.

Nike has long held the top perch in sales of sweats and sneakers in the U.S. with its Nike and Jordan brands accounting for more than 90% of the U.S. market for basketball shoes. Both Nike and Under Armour increased their market share in their respective footwear and apparel divisions for the year at the expense of Adidas.

Under Armour first surpassed Adidas in the U.S. in combined sales earlier last autumn, but the year-end numbers released on Thursday indicate the first time the Baltimore-based company has edged out Adidas at the close of a calendar year.

Adidas, which ranked third in both footwear and apparel, suffered a 30% decline in shoe sales and a 20% drop in apparel sales, according to the Sterne Agee report. Under Armour's growth relied heavily on its apparel business which rose 17% while its nascent shoe business grew 34%, ranking seventh behind other brands like Skechers, Asics, and New Balance.

The results from Sterne Agee and SportScanInfo only represent a slice of the sportswear market, and don't include sales from Dick's Sporting Goods, a major retailer for each of the three big sportswear brands. Dick's isn't expected to release fourth-quarter results until March.

Other noted sportswear industry trackers, including NPD Group, haven't yet published year-end sales estimates.

Adidas has been taking steps to stop its U.S. decline. It hired a new president of North America, Mark King, who has been vocal about spending more on marketing and investment in American sports.

On Thursday, the company announced a 12-year deal to outfit the University of Miami Hurricanes, a contract that previously had belonged to Nike.

Moreover, its global design director has relocated from Germany to the U.S., and the company is planning a new design studio in Brooklyn, New York, to open later this year, as it seeks to infuse more American identity into its offerings.

Under Armour, meanwhile, is working to build its footwear business. Its sponsorship deal with Golden State Warriors guard Stephen Curry has given the company a foothold in the basketball shoe market. Last year, the company took over the contract to outfit athletic teams at the University of Notre Dame.

But it is still early days for Under Armour. Last summer, the company lost a bidding war with Nike to sign the National Basketball Association's reigning Most Valuable Player, Kevin Durant.

Write to Sara Germano at sara.germano@wsj.com

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