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 June 26, 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 July 1, 1999.

    Class                                                          Number

Common Stock, par value $.02 per share                        7,106,192 Shares





<PAGE>
<TABLE>

PART I.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

                         STANLEY FURNITURE COMPANY, INC.
                                 BALANCE SHEETS
                        (In thousands, except share data)
<CAPTION>
                                                                            (Unaudited)
                                                                              June 26,       December 31,
                                                                                1999             1998
                                                                            __________       ___________
<S>                                                                        <C>               <C>
ASSETS
Current assets:
  Cash...............................................................       $    1,920       $     6,791
  Accounts receivable, less allowances of $2,165 and $1,906..........           33,546            29,141
  Inventories:
    Finished goods...................................................           24,074            22,853
    Work-in-process..................................................            7,214             7,495
    Raw materials....................................................           12,855            16,166
                                                                            __________       ___________
                                                                                44,143            46,514
  Prepaid expenses and other current assets..........................            1,009               903
  Deferred income taxes..............................................            2,429             1,980
                                                                            __________       ___________
    Total current assets.............................................           83,047            85,329
Property, plant and equipment, net...................................           60,539            52,474
Goodwill, less accumulated amortization of $3,528 and $3,360.........            9,912            10,080
Other assets.........................................................            6,263             6,491
                                                                            __________       ___________
                                                                            $  159,761       $   154,374
                                                                            ==========       ===========
LIABILITIES
Current liabilities:
  Current maturities of long-term debt...............................       $    5,136       $     5,136
  Accounts payable...................................................           20,812            21,837
  Accrued salaries, wages and benefits...............................           12,694            11,939
  Other accrued expenses.............................................            2,696             2,009
                                                                            __________       ___________
    Total current liabilities........................................           41,338            40,921
Long-term debt, exclusive of current maturities......................           34,968            38,403
Deferred income taxes................................................           11,143            10,694
Other long-term liabilities..........................................            1,988             1,988
                                                                            __________       ___________
  Total liabilities..................................................           89,437            92,006
                                                                            __________       ___________

STOCKHOLDERS' EQUITY
Common stock, $.02 par value, 10,000,000  shares authorized,
  7,106,192 and 7,069,715 shares issued and outstanding..............              142               141
Capital in excess of par value.......................................           36,445            37,073
Retained earnings ...................................................           33,737            25,154
                                                                            __________       ___________
  Total stockholders' equity.........................................           70,324            62,368
                                                                            __________       ___________
                                                                            $  159,761       $   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               Six Months
                                                                          Ended                     Ended
                                                                  June 26,     June 27,    June 26,      June 27,
                                                                    1999         1998        1999          1998
                                                                  _______      _______     ________      ________
<S>                                                              <C>          <C>         <C>           <C>
Net sales...................................................      $63,384      $61,863     $127,045      $119,554

Cost of sales...............................................       46,940       46,590       94,555        90,136
                                                                  _______      _______     ________      ________

  Gross profit..............................................       16,444       15,273       32,490        29,418


Selling, general and administrative expenses................        8,410        8,350       16,651        16,102
                                                                  _______      _______     ________      ________

  Operating income..........................................        8,034        6,923       15,839        13,316

Other expense, net..........................................          129           48          306            82
Interest expense............................................          875        1,102        1,748         2,186
                                                                  _______      _______     ________      ________

  Income before income taxes................................        7,030        5,773       13,785        11,048

Income taxes................................................        2,635        2,193        5,202         4,198
                                                                  _______      _______     ________      ________

  Net income................................................      $ 4,395      $ 3,580     $  8,583      $  6,850


Earnings per share:

  Basic.....................................................      $   .62      $   .51     $   1.21      $    .99
  Diluted...................................................      $   .56      $   .45     $   1.10      $    .86

Weighted average shares outstanding:

  Basic.....................................................        7,139        6,978        7,113         6,932
  Diluted...................................................        7,829        8,016        7,823         7,968



</TABLE>


  The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
                         STANLEY FURNITURE COMPANY, INC.
                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                 (In thousands)
<CAPTION>
                                                                                   Six Months Ended
                                                                              June 26,          June 27,
                                                                                1999              1998
                                                                             _________         _________
<S>                                                                         <C>               <C>
Cash flows from operating activities:
Cash received from customers.........................................        $ 122,522         $ 115,643
Cash paid to suppliers and employees.................................         (105,936)         (105,969)
Interest paid........................................................           (1,306)           (1,725)
Income taxes paid, net...............................................           (4,416)           (3,388)
                                                                             _________         _________
  Net cash provided by operating activities..........................           10,864             4,561
                                                                             _________         _________

Cash flows from investing activities:
Capital expenditures.................................................          (10,954)           (2,460)
Purchase of other assets.............................................              (44)              (41)
                                                                             _________         _________
  Net cash used by investing activities..............................          (10,998)           (2,501)
                                                                             _________         _________

Cash flows from financing activities:
Proceeds from revolving credit facility..............................              850             2,065
Repayment of Senior Notes............................................           (4,285)           (4,286)
Proceeds from exercised stock options................................              633               937
Purchase and retirement of common stock..............................           (1,935)
                                                                             _________         _________
  Net cash used by financing activities..............................           (4,737)           (1,284)
                                                                             _________         _________

Net increase (decrease) in cash......................................           (4,871)              776
Cash at beginning of period..........................................            6,791               756
                                                                             _________         _________
  Cash at end of period..............................................        $   1,920         $   1,532
                                                                             =========         =========

Reconciliation of net income to net cash provided
  by operating activities:

Net income...........................................................        $   8,583          $  6,850
Adjustments to reconcile net income to net
  cash provided by operating activities:
  Depreciation and amortization......................................            3,016             2,854
  Loss on sale of assets.............................................              131                 8
  Changes in assets and liabilities:
    Accounts receivable..............................................           (4,405)           (3,701)
    Inventories......................................................            2,371            (5,023)
    Prepaid expenses and other current assets........................             (185)              263
    Accounts payable.................................................           (1,025)            1,800
    Accrued salaries, wages and benefits.............................              755                21
    Other accrued expenses...........................................            1,362             1,764
    Deferred income taxes............................................                               (505)
    Other assets.....................................................              261               230
                                                                             _________          ________
Net cash provided by operating activities............................        $  10,864          $  4,561
                                                                             =========          ========
</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.  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.

 2.      Property, Plant and Equipment
<TABLE>
<CAPTION>
                                                                      (Unaudited)
                                                                        June 26,        December 31,
                                                                          1999              1998
                                                                       _________        __________
<S>                                                                   <C>              <C>
         Land and buildings..................................          $ 34,583           $34,699
         Machinery and equipment.............................            53,623            51,728
         Office fixtures and equipment.......................             1,772             1,772
         Construction in progress............................            10,757             1,876
                                                                       _________        __________
           Property, plant and equipment, at cost............           100,735            90,075
         Less accumulated depreciation.......................            40,196            37,601
                                                                       _________        __________
                                                                       $ 60,539           $52,474
                                                                       =========        ==========


 3.      Long-Term Debt
                                                                      (Unaudited)
                                                                        June 26,        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.........................               850
                                                                       _________        __________
               Total.........................................            40,104            43,539
           Less current maturities...........................             5,136             5,136
                                                                       _________        __________
                                                                        $34,968           $38,403
                                                                       =========        ==========
</TABLE>




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>
                                                             Three Months                 Six Months
                                                                Ended                       Ended
                                                         June 26,   June 27,         June 26,   June 27,
                                                           1999       1998             1999       1998
                                                         _______    _______          _______    _______
<S>                                                      <C>        <C>              <C>        <C>
      Weighted average shares outstanding
        for basic calculation......................        7,139      6,978            7,113      6,932
      Add:  Effect of stock options................          690      1,038              710      1,036
                                                         _______    _______          _______    _______
        Weighted average shares outstanding,
          Adjusted for diluted calculation.........        7,829      8,016            7,823      7,968
                                                         =======    =======          =======    =======
</TABLE>


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

Results of Operations

Net sales increased $1.5 million, or 2.5%, for the three month period ended June
26, 1999 from the comparable  1998 period.  For the six month period,  net sales
increased $7.5 million,  or 6.3%, from the comparable  1998 period.  The Company
closed  its  upholstery  operations  in  the  second  half  of  1998.  Excluding
upholstery  sales for the three and six month  periods of 1998,  wood  furniture
sales  increased 5.4% and 9.6% in the 1999 periods,  respectively.  The increase
was due to higher  unit volume and to a lesser  extent  higher  average  selling
prices.  Also impacting  second  quarter 1999 results were capacity  constraints
which limited shipments.

Gross  profit  margin for the three and six month  periods of 1999  increased to
25.9% and  25.6%,  respectively,  from 24.7% and 24.6% for the  comparable  1998
periods.  The increase  resulted  primarily  from stable raw  material  cost and
improved operating efficiencies.  These comparisons were also favorably impacted
by the phase out of upholstered products.

Selling, general and administrative expenses for the three and six month periods
of 1999 as a percentage of net sales decreased to 13.3% and 13.1%, respectively,
from 13.5% for both comparable 1998 periods.  The lower percentages in 1999 were
due  principally  to higher  net  sales.  Expenditures  in 1999 were  higher due
principally  to selling  expenses  directly  attributable  to  increased  sales.
However,  the  majority  of  the  increase  was  offset  by the  elimination  of
expenditures  related to  upholstered  products,  which  were  phased out in the
second half of 1998.

As a result of the above,  operating income as a percentage of net sales for the
three and six month periods of 1999 increased to 12.7% and 12.5%,  respectively,
from 11.2% and 11.1% for the comparable 1998 periods.

Interest expense for the 1999 three and six month periods decreased due to lower
average debt levels.

The Company's effective income tax rate declined to 37.7% for the 1999 six month
period from 38.0% in 1998, due to lower state tax expense.

Financial Condition, Liquidity and Capital Resources

At June 26, 1999, long-term debt including current maturities was $40.1 million.
Debt service  requirements are $850,000 remaining in 1999, $6.1 million in 2000,
$6.7 million in 2001, $6.8 million in 2002, and $6.9 million in 2003. As of June
26, 1999,  approximately  $23.1 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.

Cash  generated  from  operations  increased to $10.9 million in the 1999 period
compared to $4.6  million  during the 1998  period,  due  primarily to increased
sales.  The cash  generated  in 1999 was used to fund capital  expenditures  and
reduce borrowings.

Net cash used by  investing  activities  was $11.0  million  in the 1999  period
compared to $2.5 million in the 1998 period.  Capital  expenditures  in 1999 are
anticipated  to be  approximately  $26  million.  Approximately  $10  million of
capital  spending  in  1999  will be used to  expand  production  capability  at
existing  facilities to add $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  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. A majority
of the  capital  expenditures  incurred  to-date  in 1999 were  related to these
capacity expansion  projects.  The remaining  expenditures in the current period
and the  expenditures  in the 1998 period were primarily for plant and equipment
and other assets in the normal course of business.

Net cash  used by  financing  activities  was $4.7  million  in the 1999  period
compared to $1.3 million in the 1998 period. In the 1999 period,  available cash
was used for senior debt payments and to repurchase its common stock. During the
six months ended June 26, 1999, the Company purchased 89,550 shares of its stock
on the open market at an average price of $21.61 per share.  In the 1998 period,
cash generated from  operations and proceeds from the revolving  credit facility
were used to fund senior note payments.

Year 2000

The Company  continues to actively  address the business issues  associated with
the expected impact of the Year 2000 ("Y2K") on information  technology  systems
and  non-information  technology  systems,  including  equipment  with  embedded
microprocessors,  both  internally  and in  relation to the  Company's  external
customers and  suppliers.  Factors  involved in assessing  such business  issues
include  the  evaluation  and  testing  of the  Company's  systems;  evaluation,
upgrading  and  certifying  of automated  plant  machinery  and  equipment;  and
assessing the  compliance  strategies of  significant  customers and vendors and
monitoring the status of their strategies.

The Company has created a cross-functional Y2K team for the purpose of directing
the Company's  compliance  efforts and  identifying and addressing the impact of
noncompliance on information  technology systems and non-information  technology
systems. An inventory of all the Company's  equipment  containing date sensitive
embedded  technology  has been  completed.  All equipment has been either tested
and/or certified to be Y2K compliant.  However, additional testing will continue
for the balance of the year.  Since 1996,  the  Company has been  upgrading  its
information systems technology with Y2K compliant software to support its sales,
manufacturing  and  administrative  functions.  At the present time, the Company
believes it has completed all of the  necessary  internal  software and hardware
implementation  required  for Y2K  compliance.  The Company does not believe any
material  exposures  or  contingencies   exist  with  respect  to  its  internal
information systems.

The Company has  requested  assurances  from its major  suppliers  and  business
partners  that they will be Y2K compliant so that there will be no disruption of
their products or services as the new century  begins.  The Company has assessed
the risk of each of its significant suppliers and business partners to determine
the possible impact of their noncompliance,  if that should occur.  Although the
Company  is  presently  not aware of any  material  exposures  or  contingencies
related to the Y2K compliance  efforts of its  significant  vendors and business
partners,  if a significant  vendor or business  partner should be  noncompliant
there can be no assurance such an event will not have a material  adverse effect
on the Company's financial  position,  results of operations and cash flows. The
Company believes the actions it is taking (including the continued monitoring of
third-party  compliance and the  development of appropriate  contingency  plans)
will minimize these risks and believes it is taking responsible steps to prevent
any major disruptions.

The  Company  believes  the  actions it has taken  since 1996 with regard to Y2K
issues have  minimized Y2K related  capital costs and expenses  incurred to date
(estimated  at less  than  $1.0  million).  Substantially  all  costs  have been
incurred.

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 4.  Submission of Matters to a Vote of Security Holders

(a) The annual meeting of the Company's stockholders was held on April 29, 1999.

(c)(i)   The  stockholders  of the Company elected one director for a three-year
         term expiring at the Annual Meeting of Stockholders to be held in 2002.
         The election was approved by the following vote:

                                                      For         Withheld
         T. Scott McIlhenny, Jr.                   5,397,369       26,388

(ii)     The  stockholders   approved  the  ratification  of  the  selection  of
         PricewaterhouseCoopers  LLP as the independent  public  accountants for
         the Company for the current fiscal year. The  ratification was approved
         by the following vote:

                         FOR               5,398,912

                         AGAINST               1,414

                         ABSTAIN              23,431


Item 6.  Exhibits and Reports on Form 8-K

(a)      Exhibits

         Exhibit  4.1      Fourth Amendment,  dated as of May 10, 1999, between
                           the Registrant and The Prudential Insurance Company
                           of America.*

         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: July 13, 1999                  By: /s/ Douglas I. Payne
                                     _______________________________
                                     Douglas I. Payne
                                     Sr. V.P. - Finance and Administration,
                                     Secretary and Treasurer
                                    (Principal Financial and Accounting Officer)