Sapphire Group said its annual profit plunged to $1.4 billion in the second quarter as a rise in the price of diamonds caused the group to lose money.
The loss, which was also reflected in its revenue, was the largest quarterly loss since 2010.
Analysts had expected the loss to be less, but said the company has been struggling to keep up with rising demand for its products.
Sapphire also said it will cut jobs and reduce its workforce by 15% this year, as it tries to turn around its business and become more profitable.
Diamonds have historically been viewed as a hedge against falling demand for jewelry.
But as the industry continues to shift towards luxury and collectibles, sapphatis diamond supply has been declining.
The company has struggled with declining demand from collectors and shoppers, and said it had to make hard decisions on how to improve its operations.
Analysts had said that Sapphire Group’s loss in the third quarter was due to a decline in the prices of diamond products and the decline in diamond sales.
Diamonds, along with other gems, have long been prized for their unique quality.
They are highly sought after by jewelers because of their beautiful patterns, and their unique diamonds have often been seen as jewels.
Sapphire Group has struggled to make the switch to luxury products in recent years.
Its business has been on a steady decline since it began producing luxury jewelry in 2012.
Its diamond business has fallen from $9.2 billion in 2014 to $5.8 billion in 2016, according to data compiled by Bloomberg.
The company reported a loss of $1 billion in 2017.
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