<PAGE>
               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 30, 1997 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 10, 1997.

          Class                                     Number

Common Stock, par value $.02 per share          4,586,817 Shares
      





<PAGE>
           PART I.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

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

<TABLE>           
                                                      (Unaudited) 
                                        March 30,     December 31,
                                          1997            1996   
<S>                                     <C>            <C>
ASSETS
Current assets:
  Cash................................. $  6,748       $  8,126
  Accounts receivable, less allowances
    of $2,059 and $1,945...............   26,364         23,096
  Inventories:
    Finished goods.....................   22,902         20,953
    Work-in-process....................    6,443          6,142
    Raw materials......................   14,194         13,144 
                                          43,539         40,239
  Prepaid expenses and other current 
    assets.............................      438            486
  Deferred income taxes................    1,802          1,886
    Total current assets...............   78,891         73,833
Property, plant and equipment, at cost.   81,007         80,737
  Less accumulated depreciation........   29,270         28,024
                                          51,737         52,713
Goodwill, less accumulated amortization
  of $2,772 and $2,688.................   10,668         10,752
Other assets...........................    4,200          4,212
                                        $145,496       $141,510
LIABILITIES
Current liabilities:
  Current maturities of long-term debt. $  5,011       $    725
  Accounts payable.....................   15,614         14,630
  Accrued salaries, wages and benefits.    9,107          9,584
  Other accrued expenses...............    3,498          2,669
    Total current liabilities..........   33,230         27,608
Long-term debt, exclusive of current 
  maturities...........................   34,339         38,625
Deferred income taxes..................   11,446         11,673
Other long-term liabilities............    1,987          1,987
  Total liabilities....................   81,002         79,893

STOCKHOLDERS' EQUITY
Common stock, $.02 par value, 10,000,000
  shares authorized, 4,586,817 and
  4,579,042 shares issued and 
  outstanding..........................       91             91 
Capital in excess of par value.........   62,547         62,442
Retained earnings (deficit)............    1,856           (916)
  Total stockholders' equity...........   64,494         61,617
                                        $145,496       $141,510
</TABLE>           
           The accompanying notes are an integral part
                  of the financial statements.

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


<TABLE>

                                             Three Months Ended   
                                           March 30,      March 31,
                                             1997           1996  

<S>                                        <C>           <C> 
Net sales............................      $49,631       $ 48,190 

  
Cost of sales........................       37,170         37,421 

  
    Gross profit.....................       12,461         10,769 

Selling, general and administrative
  expenses...........................        7,127          7,046

    Operating income.................        5,334          3,723 

Other expense, net...................           69            249
Interest expense.....................          756            879 

    Income before income taxes.......        4,509          2,595 

Income taxes.........................        1,737          1,012 

  
   Net income........................      $ 2,772       $  1,583

Primary and fully diluted earnings
  per share..........................      $   .55       $    .33


Weighted average number of shares....        5,011          4,803
</TABLE>
 



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





<PAGE>

                 STANLEY FURNITURE COMPANY, INC.
                    STATEMENTS OF CASH FLOWS
                           (Unaudited)
                         (In thousands)
<TABLE>
                                              Three Months Ended 
                                             March 30,    March 31, 
                                                1997         1996 
<S>                                          <C>          <C>
Cash flows from operating activities:
Cash received from customers................ $46,323      $ 44,497
Cash paid to suppliers and employees........ (45,667)      (40,844)
Interest paid...............................  (1,038)       (1,305)
Income taxes (paid) recovered, net..........    (736)          286 
  Net cash (used) provided by operating    
    activities..............................  (1,118)        2,634
  
Cash flows from investing activities:   
Capital expenditures........................    (270)         (701)
Purchase of other assets....................     (65)          (19)
  Net cash used by investing activities.....    (335)         (720)

Cash flows from financing activities:                       
Repayment of revolving credit facility, net.                  (914)
Proceeds from exercised stock options.......      75              
  Net cash provided (used) by financing 
    activities.............................       75          (914)

Net (decrease) increase in cash............   (1,378)        1,000 
Cash at beginning of year..................    8,126           298
Cash at end of quarter.....................  $ 6,748      $  1,298

Reconciliation of net income to net cash 
  provided (used) by operating activities:

Net income.................................  $ 2,772      $  1,583
Adjustments to reconcile net income to net 
  cash provided by operating activities: 
    Depreciation and amortization..........    1,350         1,282
    Loss on sale of assets.................                    150 
    Changes in assets and liabilities:
      Accounts receivable..................   (3,268)       (3,634)
      Inventories..........................   (3,300)           62 
 
      Prepaid expenses and other current
        assets, net........................        8          (185)
      Accounts payable.....................      984           982 
      Accrued salaries, wages and benefits.     (477)        1,278
      Other accrued expenses...............      859         1,092 
    Other assets...........................       97            83
    Other long-term liabilities............     (143)          (59)
Net cash provided by operating activities..  $(1,118)      $ 2,634
</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> 
                                     (Unaudited)        
                                       March 30,       December 31,
                                          1997            1996    
     <S>                                <C>            <C>
     Land and buildings..............   $33,694        $33,694
     Machinery and equipment.........    45,136         45,120    
     Office fixtures and equipment...     1,794          1,794
     Construction in progress........       383            129
                                        $81,007        $80,737

 3.  Long-Term Debt

</TABLE>
<TABLE>                               (Unaudited)                 
                                       March 30,      December 31,
                                          1997           1996   
     <S>                                <C>            <C>
     7.28% senior notes due March
       15, 2004.....................    $30,000        $30,000
     7.57% senior note due June 
       30, 2005.....................      9,350          9,350    
         Total                           39,350         39,350
     Less current maturities........      5,011            725
                                        $34,339        $38,625
</TABLE>












<PAGE>

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

Results of Operations

Net sales increased $1.4 million, or 3.0%, for the three month
period ended March 30, 1997, from the comparable 1996 period.  The
increase was due principally to higher average selling prices.

Gross profit margin for the three month period of 1997 increased to
25.1% from 22.3% for the comparable 1996 period.  The higher gross
profit margin was due primarily to stable raw material costs and
improved operating efficiencies. 

Selling, general and administrative expenses as a percentage of net
sales decreased to 14.4% for the 1997 period from 14.6% in the
comparable 1996 period.  The lower percentage was due principally
to higher net sales in the 1997 period.

As a result of the above, operating income increased to $5.3
million, or 10.7% of net sales, from 3.7 million, or 7.7% in the
comparable 1996 period.  

Interest expense for the three month period ended March 30, 1997,
decreased due to lower debt levels.

The Company's effective income tax rate was 38.5% for the 1997
three month period and total year 1996.

Financial Condition, Liquidity and Capital Resources

At March 30, 1997, long-term debt including current maturities was
$39.4 million.  Debt service requirements for the next five years
are $725,000 in 1997, $5.1 million in both 1998 and 1999, $5.2
million in 2000, and $5.3 million in 2001.  As of March 30, 1997,
approximately $23.4 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 used cash from operations of $1.1 million in the 1997
first quarter compared to cash generated from operations of $2.6
million during the 1996 period.  Cash was required in the 1997
period to fund higher payments to suppliers and employees due to
increased production days, resulting in increased inventory levels.

Cash was also required for higher tax payments.  The cash generated
in 1996 was used to fund capital expenditures and reduce borrowings
under the revolving credit facility.  

Net cash used by investing activities was $335,000 in the 1997
period compared to $720,000 in the 1996 period.  Expenditures in
each year were primarily for plant and equipment and other assets
in the normal course of business.

Net cash provided by financing activities was $75,000 in the 1997
period compared to cash used in the 1996 period of $914,000 period.

Cash generated from operations in the 1996 period reduced
borrowings under the revolving credit facility.  
                                
New Accounting Standard

In February 1997, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 128, "Earnings Per
Share" effective for financial statements issued for periods ending
after December 15, 1997.  The new standard specifies the
computation, presentation and disclosure requirements for earnings
per share for entities with publicly held common stock.  Early
adoption of the standard is prohibited; however, the Company has
computed the pro forma earnings per share amounts using the new
standard as follows:
<TABLE>
                                           Three Months Ended   
                                        March 30,      March 31,
                                          1997           1996   
<S>                                       <C>            <C>
Basic earnings per share.............     $.60           $.33
Diluted earnings per share...........     $.55           $.33
</TABLE>








                                           



























<PAGE>
PART II.   OTHER INFORMATION

Item 6.   Exhibits and Reports on Form 8-K

 (a) Exhibits

     Exhibit 11.  Schedule of Computation of Earnings Per Share.*

     Exhibit 27.  Financial Data Schedule.*

 (b) Reports on Form 8-K

     None.








                        
* Filed herewith.





















<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 16, 1997               By: /s/ Douglas I. Payne       
                                       Douglas I. Payne 
                                       Sr. V.P. -  Finance and
                                         Administration,
                                       Secretary and Treasurer
                                       (Principal Financial and 
                                       Accounting Officer)