The mass-market beauty company had $96.8 million in sales for the first half of 2016.
Rights groups applaud the decision as a victory for individual and religious freedom.
The company said sales dropped in the oil belt region.
A decision from a Manhattan bankruptcy court judge is expected later this week.
The company said “lack of clarity across the assortment” was the problem for the quarter.
The retailer’s cleaner stores and faster checkout resulted in better sales for the second quarter and impressed Wall Street.