Nike is set to report its fiscal first-quarter earnings after the bell Thursday. Analysts surveyed by LSEG expect the company to post another quarter of declining sales, particularly in China, a market where sales dropped 12% last quarter. However, Nike anticipates its gross margin for the first fiscal quarter to be slightly positive year-over-year. Bank of America recently downgraded Nike's stock from neutral to underperform, citing rising risks amid sluggishness in the sneaker category.