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 September 30, 2000 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 October 4, 2000.

                Class                                               Number
Common Stock, par value $.02 per share                          6,913,531 Shares



<PAGE>






PART I.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS
<TABLE>
<CAPTION>

                         STANLEY FURNITURE COMPANY, INC.
                                 BALANCE SHEETS
                        (In thousands, except share data)
                                                                      (Unaudited)
                                                                       September       December
                                                                       30, 2000        31, 1999
                                                                       ---------       --------
<S>                                                                    <C>            <C>
ASSETS
Current assets:
  Cash.........................................................         $  2,265       $  3,597
  Accounts receivable, less allowances of $2,404 and $2,050....           38,213         32,133
  Inventories:
    Finished goods.............................................           28,619         22,393
    Work-in-process............................................            9,709          8,432
    Raw materials..............................................           14,678         12,755
                                                                        --------       --------
                                                                          53,006         43,580
  Prepaid expenses and other current assets....................            1,638          1,011
  Deferred income taxes........................................            2,463          2,463
                                                                        --------       --------
    Total current assets.......................................           97,585         82,784
Property, plant and equipment, net.............................           71,357         72,100
Goodwill, less accumulated amortization of $3,948 and $3,696...            9,492          9,744
Other assets...................................................            5,341          5,894
                                                                        --------       --------
                                                                        $183,775       $170,522
                                                                        ========       ========
LIABILITIES
Current liabilities:
  Current maturities of long-term debt.........................         $  5,286       $  5,236
  Accounts payable.............................................           22,580         25,836
  Accrued salaries, wages and benefits.........................           13,371         10,864
  Other accrued expenses.......................................            2,153          2,317
                                                                        --------       --------
    Total current liabilities..................................           43,390         44,253
Long-term debt, exclusive of current maturities................           44,882         33,168
Deferred income taxes..........................................           11,072         11,072
Other long-term liabilities....................................            2,456          2,456
                                                                        --------       --------
  Total liabilities............................................          101,800         90,949
                                                                        --------       --------

STOCKHOLDERS' EQUITY
Common stock, $.02 par value, 10,000,000  shares authorized,
  6,913,531 and 7,113,635 shares issued and outstanding........              138            142
Capital in excess of par value.................................           25,063         35,064
Retained earnings .............................................           59,593         44,367
Stock option loans.............................................           (2,819)
                                                                        --------       --------
    Total stockholders' equity.................................           81,975         79,573
                                                                        --------       --------
                                                                        $183,775       $170,522
                                                                        ========       ========
</TABLE>


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

<PAGE>
<TABLE>
<CAPTION>

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



                                                               Three Months               Nine Months
                                                                   Ended                     Ended
                                                          ----------------------    -----------------------
                                                          September    September    September     September
                                                          30,  2000     25, 1999     30, 2000      25, 1999
                                                          ---------    ---------    ---------     ---------
<S>                                                       <C>           <C>         <C>           <C>

Net sales...........................................       $71,440       $65,319     $214,531      $192,364

Cost of sales.......................................        53,948        48,203      161,881       142,758
                                                           -------       -------     --------      --------

    Gross profit....................................        17,492        17,116       52,650        49,606

Selling, general and administrative expenses........         8,429         8,400       25,417        25,051
                                                           -------       -------     --------      --------

    Operating income................................         9,063         8,716       27,233        24,555

Other expense, net..................................           (38)           28          (55)          335
Interest expense....................................           999           872        2,925         2,619
                                                           -------       -------     --------      --------

    Income before income taxes......................         8,102         7,816       24,363        21,601

Income taxes........................................         3,037         2,859        9,137         8,061
                                                           -------       -------     --------      --------

    Net income......................................       $ 5,065       $ 4,957     $ 15,226      $ 13,540
                                                           =======       =======     ========      ========

Earnings per share:

  Basic.............................................       $   .71       $   .69     $   2.12      $   1.90
                                                           =======       =======     ========      ========
  Diluted...........................................       $   .68       $   .64     $   2.02      $   1.74
                                                           =======       =======     ========      ========

Weighted average shares outstanding:

  Basic.............................................         7,130         7,141        7,178         7,125
                                                           =======       =======     ========      ========
  Diluted...........................................         7,434         7,762        7,549         7,804
                                                           =======       =======     ========      ========

</TABLE>


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

                         STANLEY FURNITURE COMPANY, INC.
                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                 (In thousands)
                                                                            Nine Months Ended
                                                                        ------------------------
                                                                        September      September
                                                                        30, 2000       25, 1999
                                                                        --------       --------
<S>                                                                    <C>            <C>
Cash flows from operating activities:
Cash received from customers...................................         $208,546       $186,058
Cash paid to suppliers and employees...........................         (189,832)      (156,502)
Interest paid..................................................           (3,092)        (2,915)
Income taxes paid, net.........................................           (9,154)        (6,667)
                                                                        --------       --------
  Net cash provided by operating activities....................            6,468         19,974
                                                                        --------       --------

Cash flows from investing activities:
Capital expenditures...........................................           (7,685)       (15,475)
Other, net.....................................................              (38)          (157)
                                                                        --------       --------
  Net cash used by investing activities........................           (7,723)       (15,632)
                                                                        --------       --------

Cash flows from financing activities:
Purchase and retirement of common stock........................          (12,823)        (4,438)
Proceeds from revolving credit facility........................           17,000
Repayment of Senior Notes......................................           (5,236)        (5,135)
Proceeds from insurance policy loans...........................              639            596
Proceeds from exercised stock options..........................              343          1,139
                                                                        --------       --------
  Net cash used by financing activities........................              (77)        (7,838)
                                                                        --------       --------

Net decrease in cash...........................................           (1,332)        (3,496)
Cash at beginning of year......................................            3,597          6,791
                                                                        --------       --------
  Cash at end of period........................................         $  2,265       $  3,295
                                                                        ========       ========

Reconciliation of net income to net cash provided
   by operating activities:
   Net income..................................................         $ 15,226       $ 13,540
   Adjustments to reconcile net income to net
       cash provided by operating activities:
       Depreciation and amortization...........................            6,061          4,566
       Deferred income taxes...................................                             407
       Other, net..............................................               54            131
       Changes in assets and liabilities:
         Accounts receivable...................................           (6,080)        (6,121)
         Inventories...........................................           (9,425)         4,243
         Prepaid expenses and other current assets.............           (1,185)          (187)
         Accounts payable......................................             (556)         1,224
         Accrued salaries, wages and benefits..................            1,593            817
         Other accrued expenses................................              914          1,466
         Other assets..........................................             (134)          (112)
                                                                        --------       --------
   Net cash provided by operating activities...................         $  6,468       $ 19,974
                                                                        ========       ========
</TABLE>

    The accompanying notes are an integral part of the financial statements.
<PAGE>
                         STANLEY FURNITURE COMPANY, INC.
                          NOTES TO FINANCIAL STATEMENTS
                 (In thousands, except share and per share data)


 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.  Operating results
for the interim  periods  reported  herein may not be  indicative of the results
expected for the year. 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.
<TABLE>
<CAPTION>

 2.      Property, Plant and Equipment

                                                                       (Unaudited)
                                                                        September      December
                                                                        30, 2000       31, 1999
                                                                        --------       --------
<S>                                                                     <C>            <C>
         Land and buildings....................................         $ 41,300       $ 35,871
         Machinery and equipment...............................           75,115         62,120
         Office fixtures and equipment.........................            1,830          1,732
         Construction in progress..............................            1,538         15,528
                                                                        --------       --------
             Property, plant and equipment, at cost............          119,783        115,251
         Less accumulated depreciation.........................           48,426         43,151
                                                                        --------       --------
                                                                        $ 71,357       $ 72,100
                                                                        ========       ========
</TABLE>

<TABLE>
<CAPTION>

3.       Long-Term Debt
                                                                       (Unaudited)
                                                                        September      December
                                                                        30, 2000       31, 1999
                                                                        --------       --------

<S>                                                                    <C>            <C>
         7.28% senior notes due March 15, 2004.................         $ 17,143       $ 21,429
         7.57% senior note due June 30, 2005...................            6,025          6,975
         7.43% senior notes due November 18, 2007..............           10,000         10,000
         Revolving credit facility.............................           17,000
                                                                        --------       --------
               Total...........................................           50,168         38,404
         Less current maturities...............................            5,286          5,236
                                                                        --------       --------
                                                                        $ 44,882       $ 33,168
                                                                        ========       ========
</TABLE>

 In March 2000,  the  Revolving  Credit  Facility  was  amended to increase  the
borrowing limit from $25 million to $35 million.




4.       Stock Option Plan

The  Company  maintains  a stock  option  plan  under  which  holders of certain
exercisable stock options may obtain  interest-bearing loans from the Company to
facilitate  their  exercise  of stock  options.  Such  loans  are  evidenced  by
promissory notes and are  collateralized by the shares of stock. As of September
30, 2000, approximately $2.8 million in stock option loans are outstanding.


5.       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>
                                                               Three Months               Nine Months
                                                                   Ended                     Ended
                                                          -----------------------    ---------------------
                                                          September     September    September   September
                                                          30, 2000      25, 1999     30, 2000     25,1999
                                                          --------      --------     --------     -------
<S>                                                         <C>           <C>          <C>         <C>

      Weighted average shares outstanding
          for basic calculation.....................         7,130         7,141        7,178       7,125
      Add: Effect of stock options..................           304           621          371         679
                                                             -----         -----        -----       -----
          Weighted average shares outstanding,
              adjusted for diluted calculation......         7,434         7,762        7,549       7,804
                                                             =====         =====        =====       =====
</TABLE>


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

Results of Operations

Net sales  increased  $6.1  million,  or 9.4%,  for the three month period ended
September 30, 2000 from the comparable  1999 period.  For the nine month period,
net sales  increased $22.2 million,  or 11.5%,  from the comparable 1999 period.
The increase  was due  primarily  to higher unit volume in the  Company's  Young
America(TM)  youth  bedroom  and home  office  product  lines.  The  Company has
recently  experienced  a softening  in overall  demand and expects  slower sales
growth in the fourth quarter and into next year.

During 1999, the Company completed  expansion projects to increase production in
response to the  growing  demand for its  bedroom  and Young  America(TM)  youth
bedroom product lines.  During the first quarter of 2000, the Company  commenced
operations at its new  manufacturing  facility in response to the growing demand
for home office furniture. The Company has experienced consistent improvement in
operating  performance  at this new facility and expects  continued  improvement
going forward.  However, as product is moved to the new facility, some temporary
operating  inefficiencies are anticipated in the fourth quarter, due to a change
in product mix at several other factories.

Gross profit margin for both the three and nine month periods of 2000  decreased
to 24.5% from 26.2% and 25.8%,  respectively,  for the comparable  1999 periods.
The decrease resulted  primarily from start-up expenses  associated with the new
facility  dedicated  to the  production  of home  office  furniture,  higher raw
material  cost and  increased  labor cost.  The Company  continues to experience
higher raw material cost, principally lumber, and expects this trend to continue
into 2001.

Selling,  general and administrative  expenses for both the three and nine month
periods of 2000 as a percentage  of net sales  decreased to 11.8% from 12.9% and
13.0%,  respectively,  for the comparable 1999 periods. The lower percentages in
2000 were due  principally to higher net sales.  The increased  expenditures  in
2000  were  primarily  selling  expenses  directly  attributable  to  the  sales
increase.

As a result of the  above,  operating  income as a  percentage  of net sales was
12.7% for both the three and nine month  periods of 2000  compared  to 13.3% and
12.8%, respectively, for the comparable prior year periods.

Interest  expense  for the 2000  three  and nine  month  periods  increased  due
primarily to higher average debt levels,  resulting  from increased  inventories
and accounts receivable, and repurchases of the Company's common stock.

The Company's effective income tax rate was 37.5% for the 2000 nine month period
and 36.9% for total year 1999. The lower 1999 percentage was due to state income
tax credits related to expansion projects.

Financial Condition, Liquidity and Capital Resources

Cash  generated  from  operations  decreased  to $6.5 million in the 2000 period
compared to $20.0 million in the 1999 period.  This decrease was attributable to
increased  inventory  levels and higher tax payments.  The cash generated in the
1999  period  was  used to fund  capital  requirements,  reduce  borrowings  and
repurchase the Company's common stock.

Net cash  used by  investing  activities  was $7.7  million  in the 2000  period
compared  to  $15.6  million  in the 1999  period.  Net  cash  used for  capital
expenditures  in the 2000 period was $7.7  million,  reflecting  $2.7 million of
prior year  capital  expenditures  included in accounts  payable at December 31,
1999 and $5.0 million of capital expenditures in the 2000 period. In the current
year,  capital  expenditures  were  primarily  for plant and equipment and other
assets in the normal course of business. In 1999, capital expenditures were made
for  capacity  expansion  projects  in addition  to  expenditures  for plant and
equipment  and  other  assets  in  the  normal   course  of  business.   Capital
expenditures  in 2000,  excluding  carryover  from 1999,  are  anticipated to be
approximately $6.5-$7.5 million.

Net cash used by financing activities was $77,000 in the 2000 period compared to
$7.8 million in the 1999 period.  In the 2000 period,  cash from  operations and
borrowings  under the revolving  credit facility  provided cash for the purchase
and retirement of the Company's  common stock,  senior debt payments and capital
expenditures.  During the nine months  ended  September  30,  2000,  the Company
purchased  549,400 shares of its stock on the open market at an average price of
$23.34.  In  August  2000,  the  Company's  Board  of  Directors  increased  the
authorization  to  repurchase  shares of its common  stock by $10 million to $30
million.  Since October 1998,  the Company has utilized  $23.1  million,  of the
$30.0  million  authorization,  to purchase a total of  1,091,150  shares of its
common stock at an average price of $21.156 per share.

At September 30, 2000,  long-term  debt including  current  maturities was $50.2
million.  Debt service  requirements  are $6.7 million in 2001, $23.8 million in
2002,  $6.9  million in 2003,  and $7.0  million  in 2004.  In March  2000,  the
revolving  credit  facility was amended to increase  available  borrowings  from
$25.0 million to $35.0 million.  As of September 30, 2000,  approximately  $16.4
million of additional  borrowings were available  under the Company's  revolving
credit  facility,  after  adjusting  for  outstanding  letter of credits of $1.6
million.  The Company  believes  that its  financial  resources  are adequate to
support its capital needs and debt service requirements.

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, and
general economic conditions.


PART II.  OTHER INFORMATION

Item 3.  Legal Proceedings

         On July 9, 1999,  the United  States  Environmental  Protection  Agency
("EPA") served the Company with an  administrative  complaint citing the alleged
failure  of a July  1998  compliance  test  of one  boiler  at the  Stanleytown,
Virginia  facility  and  seeking  a civil  fine in the  amount of  $175,000.  In
September  2000,  the  Company  reached a  settlement  with the EPA in which the
Company  agreed  to pay a  $57,000  penalty  and  complete  a  special  $237,000
five-year project to install  filtration systems for certain spray booths on its
furniture  finishing  line. The costs related to the settlement are not expected
to have a  material  adverse  effect on the  Company's  financial  condition  or
results of operations.

Item 4.  Submission of Matters to a Vote of Security Holders
         ---------------------------------------------------

(a)      A special meeting of the Company's stockholders was held on August 24,
         2000.

(c)(i)   The stockholders of the Company approved the Stanley Furniture Company,
         Inc. 2000 Incentive Compensation Plan by the following vote:

                                              FOR             4,269,332
                                                              ---------

                                              AGAINST           922,148
                                                              ---------

                                              ABSTAIN            14.918
                                                              ---------

Item 6.  Exhibits and Reports on Form 8-K

(a)      Exhibits

         Exhibit 10.1    2000 Incentive Compensation Plan (incorporate by
                           reference to Registration Statement on Form S-8
                           No. 333-45402).

         Exhibit 10.2    Amendment No. 2 to The Stanley Furniture Company, Inc.
                           1992 Stock Option Plan dated as of July 1, 2000.*

         Exhibit 10.3    Amendment No. 1 to The Stanley Furniture Company, Inc.
                           1994 Stock Option Plan dated as of July 1, 2000.*

         Exhibit  27     Financial Data Schedule. *

(b)      Reports on Form 8-K
         A report on Form 8-K was  filed on  August  25,  2000 to  announce  the
         Company's  Board of Directors'  authorization  to use an additional $10
         million to repurchase the Company's common stock.
---------------------------
* 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: October 17, 2000              By:  /s/Douglas I. Payne
                                    ------------------------------------------
                                    Douglas I. Payne
                                    Sr. V.P. - Finance and Administration,
                                    Secretary and Treasurer
                                   (Principal Financial and Accounting Officer)