Shares of Dick's Sporting Goods dipped more than 11 percent in early trading after the Findlay retailer reported the economic slowdown is starting to hurt sales and offered a cautious outlook for the rest of the year.

The Findlay retailer reported net income fell 4 percent and sales in its namesake stores open at least a year dropped 3.8 percent in the first quarter.

Net income dropped to $20.8 million, or 18 cents per share, in the three months ended May 3, from $21.7 million, or 19 cents per share, last year. Net sales rose 18 percent to $912.1 million, mainly as a result of the addition of new stores.

Looking ahead, Dick's is projecting second quarter earnings will come in between 34 and 38 cents a share. Analysts polled by Thomson Financial Network had been looking for 43 cents.

For the full fiscal year, the company is guiding expectations for earnings per share in the range of $1.22 to $1.36. Analysts were looking for an average of $1.50.

Over the course of the full year, the company is projecting sales at established stores could dip 3 to 5 percent.

"In 2008, we are continuing to grow our business and build our brand," said Edward W. Stack, chairman, president and chief executive officer. "However, we are being cautious about our outlook for the remainder of the year, due to the overall uncertainty of the current economic environment."

Dick's shares closed yesterday at $26.54. By mid-morning today, shares were trading for less than $22.