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Shares of Tiffany & Co. slipped to a multi-year low before rebounding on Friday, after an analyst warned that softening consumer spending and declining tourism will hurt the jeweler this year and in 2009.

Tiffany shares rose $1.62, or 9.1 percent, to close at $19.48, after setting a nine-year low of $16.75 earlier in the session.

Tiffany, which posts third-quarter results next week, is being hurt by a slowdown in luxury spending in the U.S. and declining tourism, according to Cowen & Co. analyst Laura Champine.

Champine, who rates the stock "Underperform," also expects a weak economy to hurt results in Japan, Europe and emerging markets.

Looking specifically at Japan, Champine said Tiffany's expectation for same-store sales in the country to decline in the mid-single digits "could be bullish," as Champine expects Japanese consumers will scale back on spending.

"We believe the company's outlook for a low-double-digit increase in total sales dollars for the entire Asia region, including Japan, is unlikely," Champine wrote in a client note.

Champine also said economic data in the U.K. has been weak, and this country accounts for about half of Europe's sales.

"We expect a deteriorating outlook for the company's fiscal 2009 European results," Champine wrote.

Champine said it's likely Tiffany will forecast an outlook for fiscal 2009 below Wall Street expectations next week when reporting quarterly results.

Shares of Tiffany have declined 61.2 percent so far this year.

Shares of Borders Group Inc. plunged Friday after its top competitor reported disappointing third-quarter results, setting a dark stage for Borders to report its results next week.

Shares of Borders fell 26 cents, or 19 percent, to $1.11 Friday. Earlier in trading shares reached 72 cents, their lowest point ever.

Booksellers have been struggling more recently as consumers limit their spending on discretionary items such as books and music. They also face increased competition from discounters such as Wal-Mart and Target and online sellers such as Amazon.com.

Although Borders has been in a turnaround, it has been unable to find a buyer for the bulk of its business.

And its larger competitor Barnes & Noble reported a larger-than-anticipated loss Thursday, which doesn't bode well for Ann Arbor, Mich.-based Borders. The company is expected to report its third-quarter results Tuesday after the market closes.

Analysts surveyed by Thomson Reuters expect Borders to post a loss of 50 cents per share, on average, on revenue of $726.5 million. That compares with a loss of $161.1 million, or $2.74 per share, on revenue of $813.6 million in the year-ago quarter. The loss from continuing operations was 66 cents per share.

Standard & Poor's Equity Research reiterated its "Hold" recommendation on Borders but widened its per-share loss estimated to 60 cents from 45 cents, based on drops in traffic and increased promotion activity that could hurt margins.

S&P analyst Michael Souers said the trend is likely to continue and lowered his profit estimates for fiscal 2009 and 2010 and cut his target price to $1 from $7.