Dive Brief:

• With nearly $31 billion in annual sales, Nike is far and away the world’s largest sportswear maker and retailer, but faces a challenge in maintaining its large lead.

• Research from Citigroup has found that Nike’s North American region reported 15% growth in future orders, a good indictor of demand, and that Nike must maintain such double-digit increases to also maintain interest from investors.

• Upstart sports gear retailer Under Armour has been giving Nike a run for its money and has made it clear it’s up to the long run. 

Dive Insight:

Nike is hardly in trouble, but its most successful spaces — athleisure and  footwear — are facing stiff competition. Apparel and sports retailers alike are finding success at various price points in the athleisure space. And its footwear, long a reason for Nike’s dominance, is being challenged by Under Armour — which has increasingly attracted big-name athletes and teams.

Adidas, which has fallen to third place as Under Armour has surged, is working hard to regain its footing. That, plus Under Armour’s great ambitions, could ding the juggernaut that is Nike.

And Nike for the first time is navigating these waters with its dynamic founder, Phil Knight, planning his retirement this year as chairman.

“For me, Nike has always been more than just a company — it has been my life’s passion,” said Knight.

Knight was the guy who saw Nike not just as an apparel and footwear maker, but as an “entertainment” company. It was Knight who fought to bring on Michael Jordan, for example, which launched a barrage of captivating and award-winning marketing that arguably helped in turn launch Jordan to super-hero status and even contributed to the global popularity of the game of basketball. 

In the end, though, Nike really is “just a company,” with rivals, like any ambitious athlete, unlikely to simply accept that its number one position is an unshakeable given.