UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                    FORM 10-Q

(Mark One)

        X     Quarterly report pursuant to Section 13 or 15(d) of the Securities
     ------   Exchange Act of 1934
     

For the quarterly period ended March 27, 1999 or

     ------   Transition report pursuant to Section 13 or 15(d)of the Securities
              Exchange  Act of 1934

For the transition period from               to               .

Commission file number 0-14938.

                         STANLEY FURNITURE COMPANY, INC.
             (Exact name of registrant as specified in its charter)


     Delaware                                               54-1272589
(State or other jurisdiction of                         (I.R.S. Employer
incorporation or organization)                          Identification No.)


           1641 Fairystone Park Highway, Stanleytown, Virginia 24168
               (Address of principal executive offices, Zip Code)


                                 (540) 627-2000
              (Registrant's telephone number, including area code)


                 (Former name, former address and former fiscal
                       year, if changed since last report)


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days:
                                                       YES   X          NO

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock as of April 8, 1999.

         Class                                            Number

Common Stock, par value $.02 per share                 7,117,742  Shares

<PAGE>
<TABLE>


PART I.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

                         STANLEY FURNITURE COMPANY, INC.
                                 BALANCE SHEETS
                        (In thousands, except share data)

<CAPTION>
                                                                               (Unaudited)
                                                                                March 27,       December 31,
                                                                                 1999              1998
                                                                                __________        __________
<S>                                                                             <C>               <C>

ASSETS
Current assets:
  Cash.................................................................         $    2,819        $    6,791
  Accounts receivable, less allowances of $2,175 and $1,906............             34,258            29,141
  Inventories:
    Finished goods.....................................................             21,223            22,853
    Work-in-process....................................................              7,427             7,495
    Raw materials......................................................             17,521            16,166
                                                                                __________        __________ 
                                                                                    46,171            46,514
  Prepaid expenses and other current assets............................                865               903
  Deferred income taxes................................................              2,429             1,980
                                                                                __________        __________
    Total current assets...............................................             86,542            85,329

Property, plant and equipment, net.....................................             53,253            52,474
Goodwill, less accumulated amortization of $3,444 and $3,360...........              9,996            10,080
Other assets...........................................................              6,427             6,491
                                                                                __________        __________ 
                                                                                $  156,218        $  154,374
                                                                                ==========        ==========          
LIABILITIES
Current liabilities:
  Current maturities of long-term debt.................................         $    5,136        $    5,136
  Accounts payable.....................................................             20,451            21,837
  Accrued salaries, wages and benefits.................................             11,722            11,939
  Other accrued expenses...............................................              4,826             2,009
                                                                                __________        __________
    Total current liabilities..........................................             42,135            40,921

Long-term debt, exclusive of current maturities........................             34,118            38,403
Deferred income taxes..................................................             11,143            10,694
Other long-term liabilities............................................              1,988             1,988
                                                                                __________        __________ 
  Total liabilities....................................................             89,384            92,006
                                                                                __________        __________

STOCKHOLDERS' EQUITY
Common stock, $.02 par value, 10,000,000 shares authorized,
7,117,742 and 7,069,715 issued and outstanding.........................                142               141
Capital in excess of par value.........................................             37,350            37,073
Retained earnings......................................................             29,342            25,154
                                                                                __________        __________ 
  Total stockholders' equity...........................................             66,834            62,368
                                                                                __________        __________
                                                                                $  156,218        $  154,374
                                                                                ==========        ==========
</TABLE>

    The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>

                         STANLEY FURNITURE COMPANY, INC.
                              STATEMENTS OF INCOME
                                   (Unaudited)
                      (In thousands, except per share data)

<CAPTION>


                                                                                    Three Months Ended
                                                                                March 27,         March 28,
                                                                                  1999               1998
                                                                                __________        __________

<S>                                                                             <C>              <C>

Net sales..............................................................           $63,661           $57,691
Cost of sales..........................................................            47,615            43,546
                                                                                __________        __________  

  Gross profit.........................................................            16,046            14,145

Selling, general and administrative expenses...........................             8,241             7,752
                                                                                __________        __________

  Operating income.....................................................             7,805             6,393

Other expense, net.....................................................               177                34
Interest expense.......................................................               873             1,084
                                                                                __________        __________ 

  Income before income taxes...........................................             6,755             5,275

Income taxes...........................................................             2,567             2,005
                                                                                __________        __________

  Net income...........................................................           $ 4,188           $ 3,270
                                                                                ==========        ========== 

Earnings per share:

  Basic................................................................               .59               .48
  Diluted..............................................................               .54               .41

Weighted average shares outstanding:

  Basic................................................................             7,089             6,874
  Diluted..............................................................             7,816             7,898


</TABLE>


     The accompanying notes are an integral part of thefinancial statements.


<PAGE>
<TABLE>

                         STANLEY FURNITURE COMPANY, INC.
                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                 (In thousands)

<CAPTION>
                                                                                   Three Months Ended
                                                                                 March 27,        March 28,
                                                                                   1999             1998 
                                                                                __________       __________
<S>                                                                             <C>             <C>
   
Cash flows from operating activities:
Cash received from customers...........................................         $ 58,337          $ 53,836
Cash paid to suppliers and employees...................................          (55,282)          (51,503)
Interest paid..........................................................             (924)           (1,183)
Income taxes received (paid), net......................................              376               (37)
                                                                                __________       __________
  Net cash provided by operating activities............................            2,507             1,113
                                                                                __________       __________

Cash flows from investing activities:
Capital expenditures...................................................           (2,261)           (1,012)
Purchase of other assets...............................................              (28)              (24)
                                                                                __________       __________
  Net cash used by investing activities................................           (2,289)           (1,036)
                                                                                __________       __________

Cash flows from financing activities:
Proceeds from revolving credit facility, net...........................                              5,098
Repayment of senior notes..............................................           (4,285)           (4,286)
Purchase and retirement of common stock................................             (183)
Proceeds from exercised stock options..................................              278                72
                                                                                __________       __________ 
  Net cash provided (used) by financing activities.....................           (4,190)              884
                                                                                __________       __________

Net increase (decrease) in cash........................................           (3,972)              961
Cash at beginning of year..............................................            6,791               756
                                                                                __________       __________ 
  Cash at end of quarter...............................................         $  2,819          $  1,717
                                                                                ==========       ==========
Reconciliation of net income to net cash provided
  by operating activities:

Net income.............................................................         $  4,188          $  3,270
Adjustments to reconcile net income to net
  cash provided by operating activities:
  Depreciation and amortization........................................            1,493             1,416
  Loss on sale of assets...............................................              106
  Changes in assets and liabilities:
    Accounts receivable................................................           (5,117)           (3,868)
    Inventories........................................................              343            (2,712)
    Prepaid expenses and other current assets, net.....................              (34)              914
    Accounts payable...................................................           (1,386)              876
    Accrued salaries, wages and benefits...............................             (217)              (14)
    Other accrued expenses.............................................            3,000             1,116
    Other assets.......................................................              131               115
                                                                                __________       __________
Net cash provided by operating activities..............................         $  2,507          $  1,113
                                                                                ==========       ==========
</TABLE>


     The accompanying notes are an integral part of the financial statements.
<PAGE>

                         STANLEY FURNITURE COMPANY, INC.
                          NOTES TO FINANCIAL STATEMENTS
                                 (In thousands)


 1.      Preparation of Interim Financial Statements

The financial  statements of Stanley  Furniture  Company,  Inc.  (referred to as
"Stanley" or the "Company")  have been prepared in accordance with the rules and
regulations of the Securities and Exchange Commission ("SEC"). In the opinion of
management,  these  statements  include  all  adjustments  necessary  for a fair
presentation of the results of all interim  periods  reported  herein.  All such
adjustments are of a normal recurring nature.  Certain  information and footnote
disclosures prepared in accordance with generally accepted accounting principles
have been either  condensed  or omitted  pursuant to SEC rules and  regulations.
However,  management  believes that the disclosures made are adequate for a fair
presentation  of results of operations and financial  position.  It is suggested
that  these  financial  statements  be read in  conjunction  with the  financial
statements and accompanying  notes included in Stanley's latest Annual Report on
Form 10-K.

 2.      Property, Plant and Equipment
<TABLE>
<CAPTION>
     
                                                                               (Unaudited)
                                                                                March 27,        December 31,
                                                                                  1999               1998
                                                                                __________       __________
<S>                                                                             <C>             <C>

         Land and buildings............................................          $34,583           $34,699
         Machinery and equipment.......................................           52,342            51,728
         Office fixtures and equipment.................................            1,772             1,772
         Construction in progress......................................            3,520             1,876
                                                                                __________       __________
           Property, plant and equipment, at cost......................           92,217            90,075
         Less accumulated depreciation.................................           38,964            37,601
                                                                                __________       __________
           Property, plant and equipment, net..........................          $53,253           $52,474
                                                                                ==========       ==========

 3.      Long-Term Debt
                                                                               (Unaudited)
                                                                                March 27,       December 31,
                                                                                  1999              1998
                                                                                __________       __________

         7.28% senior notes due March 15, 2004.........................          $21,429           $25,714
         7.57% senior note due June 30, 2005...........................            7,825             7,825
         7.43% senior notes due November 18, 2007......................           10,000            10,000
         Revolving credit facility.....................................           -                 -
                                                                                __________       __________
           Total.......................................................           39,254            43,539
         Less current maturities.......................................            5,136             5,136
                                                                                __________       __________
          Long-term debt, exclusive of current maturities..............          $34,118           $38,403
                                                                                ==========       ==========
</TABLE>


In March 1999, the revolving  credit  facility was amended to reduce interest on
borrowings  to prime or at the  Company's  option at a rate equal to the reserve
adjusted LIBOR rate plus .75% per annum.





 4.       Earnings Per Common Share

Basic  earnings  per common  share are based upon the  weighted  average  shares
outstanding.  Outstanding  stock options are treated as common stock equivalents
for purposes of computing diluted earnings per share. Basic and diluted earnings
per share are calculated using the following share data (unaudited):
<TABLE>
<CAPTION>


                                                                                March 27,         March 28,
                                                                                  1999              1998
                                                                                __________       __________
<S>                                                                             <C>              <C>

         Weighted average shares outstanding for basic
             calculation...............................................          7,089             6,874
         Add:  Effect of stock options.................................            727             1,024
                                                                                __________       __________
             Weighted average shares outstanding,
                adjusted for diluted calculation.......................          7,816             7,898
                                                                                ==========       ==========
</TABLE>


The Company  effected a two-for-one  stock split,  distributed  in the form of a
stock  dividend on May 15, 1998, to  stockholders  of record on May 1, 1998. All
related amounts have been retroactively adjusted to reflect the stock split.


ITEM 2.  Management's Discussion and Analysis of Financial Condition and Results
         of Operations

Results of Operations

Net sales  increased  $6.0 million,  or 10.3%,  for the three month period ended
March 27, 1999, from the comparable 1998 period.  The increase was due to higher
unit volume and to a lesser extent higher average selling prices.

Gross profit  margin for the three month period of 1999  increased to 25.2% from
24.5% for the  comparable  1998 period.  The increase  resulted  primarily  from
improved  operating  efficiencies and was favorably impacted by the phase out of
upholstered products in the second half of 1998.

Selling,  general  and  administrative  expenses  as a  percentage  of net sales
decreased to 12.9% for the 1999 period from 13.4% in the comparable 1998 period.
The lower percentage was due principally to higher net sales in the 1999 period.
The  majority of the  $489,000  increase in 1999 was selling  expenses  directly
attributable to the sales increase.

As a result of the above,  operating income increased to $7.8 million, or 12.3%
of net sales,  from $6.4 million, or 11.1% in the comparable 1998 period.

Interest  expense  for the three  month  period of 1999  decreased  due to lower
average debt levels.

The  Company's  effective  income  tax rate was 38.0% for the 1999  three  month
period and total year 1998.



Financial Condition, Liquidity and Capital Resources

At March  27,  1999,  long-term  debt  including  current  maturities  was $39.3
million.  Debt service requirements are $850,000 remaining in 1999, $5.2 million
in 2000,  $6.7 million in 2001,  $6.8 million in 2002, and $6.9 million in 2003.
As of March 27, 1999,  approximately $24.0 million of additional borrowings were
available under the Company's  revolving credit  facility.  The Company believes
that its financial  resources are adequate to support its capital needs and debt
service requirements.

The Company  generated  cash from  operations  of $2.5 million in the 1999 first
quarter  compared  to $1.1  million in the 1998  period.  The  increase  was due
primarily to increased  sales and to a lesser  extent,  lower tax payments.  The
Company  used the cash  generated  from  operations  in the 1999  period to fund
capital requirements and reduce borrowings.

Net cash  used by  investing  activities  was $2.3  million  in the 1999  period
compared  to $1.0  million in the 1998  period.  Expenditures  in each year were
primarily  for plant and  equipment  and other  assets in the  normal  course of
business.  Capital  expenditures in 1999 are anticipated to be approximately $28
million.  Approximately  $10 million of capital spending in 1999 will be used to
expand production capability at existing facilities to add approximately $30-$35
million of increased sales capacity on an annualized basis. This new capacity is
expected  to be phased  in during  the  second  half of 1999 and will  allow the
Company to increase production for its bedroom and Young AmericaTM youth bedroom
products.  Approximately $15 million of capital spending in 1999 will be used to
purchase  and  equip a  facility  dedicated  to the  production  of home  office
furniture.  This facility is expected to begin operation late this year or early
next year and should provide  $50-$60 million of sales capacity on an annualized
basis when in full production in two to three years.

Net cash  used by  financing  activities  was $4.2  million  in the 1999  period
compared  to cash  provided  by  financing  activities  of  $884,000 in the 1998
period. In the 1999 period, available cash was used for senior debt payments. In
the 1998 period,  borrowings under the revolving  credit facility  provided cash
for senior debt payments.

Year 2000

In early 1998,  the Company  initiated a  cross-functional  team to identify and
address internal hardware, software and equipment compliance issues arising from
the many  challenges  posed by the Year  2000.  Key  financial  information  and
operational  systems,  including equipment with embedded  microprocessors,  have
been  inventoried  and  assessed.   Detailed  plans  are  in  place  for  system
modifications or replacements, and a compliance plan for equipment with embedded
technology has been developed and is currently being implemented.

Since 1996, the Company has been upgrading its information  systems  technology,
with Year 2000  compliant  software,  to support  its sales,  manufacturing  and
administrative  functions.  The  cost of  information  and  operational  systems
upgrades  is  estimated  at less than $1.0  million.  Computers  and  peripheral
devices are approximately 85 percent  compliant at this point.  Final compliance
and  testing for both  information  and  operational  systems is  scheduled  for
completion by mid-1999.  The estimated cost to complete Year 2000  compliance is
less than $100,000.

In  addition,  the  Company  is  communicating  with key  customers,  suppliers,
financial  institutions  and others with whom it does business to determine Year
2000 compliance and is currently assessing the potential impact on operations if
third parties are not successful in converting their systems in a timely manner.


The  Company   believes  it  is  taking   reasonable   steps  to  prevent  major
interruptions  in its business,  resulting from the Year 2000 compliance  issue.
However,  if the Company or its key suppliers do not complete  enhancements in a
timely  manner  or if  remedial  efforts  are  not  successful,  the  Year  2000
compliance  issue may have a material  adverse  impact on the  operations of the
Company.  Contingency plans are currently being developed to minimize the impact
of any  such  interruptions,  such  as,  backup  procedures,  identification  of
alternate  suppliers and/or increasing  inventory safety stocks,  and such plans
are expected to be in place by the end of 1999.

Forward-Looking Statements

Certain  statements made in this report are not based on historical  facts,  but
are forward-looking statements. These statements can be identified by the use of
forward-looking  terminology  such  as  "believes,"  "expects,"  "may,"  "will,"
"should," or "anticipates"  or the negative thereof or other variations  thereon
or comparable  terminology,  or by  discussions  of strategy.  These  statements
reflect the Company's  reasonable judgment with respect to future events and are
subject to risks and  uncertainties  that could cause  actual  results to differ
materially  from  those  in  the  forward-looking  statements.  Such  risks  and
uncertainties   include  the  cyclical   nature  of  the   furniture   industry,
fluctuations in the price for lumber which is the most  significant raw material
used by the Company,  competition  in the  furniture  industry,  capital  costs,
delays in construction or obtaining  necessary  permits for planned  expansions,
and general economic conditions.


PART II.   OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K

(a)      Exhibits

         Exhibit 10.1   Fifth Amendment, dated as of March 10, 1999, to the
                        Second Amended and Restated  Revolving  Credit  Facility
                        and Term Loan  Agreement  dated  February 15, 1994 among
                        the Registrant,  National Canada Finance Corp.,  and the
                        National Bank of Canada. (1)

         Exhibit 10.2   Employment Agreement dated as of April 1, 1999 between 
                        John W. Johnson and the Registrant. (1) (2)

         Exhibit 10.3   Employment Agreement dated as of April 1, 1999 between
                        William A. Sibbick, Jr. and the Registrant. (1) (2)

         Exhibit 10.4   Employment Agreement dated as of April 1, 1999 between
                        Kelly S. Cain and the Registrant. (1) (2)

         Exhibit 27.    Financial Data Schedule. (1)


(b)      Reports on Form 8-K

         None.

(1) Filed herewith.
(2) Management contract or compensatory plan.


<PAGE>


                                    SIGNATURE



         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  registrant  has  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

                                  STANLEY FURNITURE COMPANY, INC.


Date: April 14, 1999              By: /s/ Douglas I. Payne
                                     __________________________
                                     Douglas I. Payne
                                     Sr. V.P. - Finance & Administration,
                                     Secretary and Treasurer
                                    (Principal Financial and Accounting Officer)