A surging Adidas is 'causing panic internally' at Nike (NKE)
Nike may be getting nervous.
The position of the world's largest sportswear maker is looking more precarious with every quarter. As Nike's growth stagnates, its rival Adidas continues to post staggering US growth numbers and eat away at market share.
Though Nike still maintains 44% of the US sportswear market, Adidas' share has nearly doubled to 11% from a year ago, according to NPD data.
Much of Adidas' growth has come at the expense of Nike brands.
RELATED: Evolution of Adidas
That's "causing panic internally" at Nike, Canaccord Genuity analysts wrote in a note to investors, citing industry contacts. The bank wrote that many Nike products have gone on sale in stores this quarter, and it cites poor performances from Finish Line and Foot Locker, which both sell a large quantity of Nike merchandise.
To make matters worse for Nike, investors continue to be concerned about the brand's innovation pipeline, which Canaccord called "stale."
Nike's dominance is so great, it can afford to falter for a while before getting back on its feet. But it's only a matter of time before investors' patience starts to wane, according to analysts.
More from Business Insider: