Charles & Colvard Ltd., a manufacturer and distributer of imitation diamonds, reported a loss of $0.7 million for the second quarter as the jewelry company’s net sales continue to fell despite decreased operating expenses.

The Morrisville-based company reported net sales of $6.4 million and a net loss of $697,772, or 3 cents per share, down from $6.8 million last quarter and a net loss of $402,781, or 2 cents per share.

The company’s online segment saw sales increase 49 percent in the second quarter, while sales in the traditional segment– including distributors, retail and television customers– fell 31 percent.

That decline was due to a single distributor pausing its purchases of Charles & Colvard’s products, CEO Suzanne Miglucci said in a conference call, although the purchasing relationship is now “back on track,” she said.

Miglucci said on the call that Charles & Colvard has seen increasing market competition since moissanite went off patent three years ago.

In the call, Miglucci also announced two new company partnerships: a retail partnership with department store SteinMart, and a recently expanded partnership with Walmart.

The company’s stock price fell 2 percent on Thursday, closing at 98 cents per share.

The filing can be found here.