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 April 1, 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 April 8, 2000.

                Class                                            Number

Common Stock, par value $.02 per share                      7,339,071  Shares

<PAGE>


PART I.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS


                         STANLEY FURNITURE COMPANY, INC.
                                 BALANCE SHEETS
                        (In thousands, except share data)
<TABLE>
<CAPTION>

                                                                      (Unaudited)
                                                                        April 1,        December 31,
                                                                          2000              1999
                                                                        --------          --------
<S>                                                                     <C>              <C>
ASSETS
Current assets:

  Cash.........................................................         $  1,368          $  3,597
  Accounts receivable, less allowances of $2,264 and $2,050....           38,521            32,133
  Inventories:
    Finished goods.............................................           23,674            22,393
    Work-in-process............................................            9,602             8,432
    Raw materials..............................................           15,448            12,755
                                                                        --------          --------
                                                                          48,724            43,580
  Prepaid expenses and other current assets....................              595             1,011
  Deferred income taxes........................................            2,463             2,463
                                                                        --------          --------
    Total current assets.......................................           91,671            82,784

Property, plant and equipment, net.............................           72,490            72,100
Goodwill, less accumulated amortization of $3,780 and $3,696...            9,660             9,744
Other assets...................................................            5,583             5,894
                                                                        --------          --------
                                                                        $179,404          $170,522
                                                                        ========          ========
LIABILITIES
Current liabilities:

  Current maturities of long-term debt.........................         $  5,236          $  5,236
  Accounts payable.............................................           23,452            25,836
  Accrued salaries, wages and benefits.........................           11,685            10,864
  Other accrued expenses.......................................            4,027             2,317
                                                                        --------          --------
    Total current liabilities..................................           44,400            44,253

Long-term debt, exclusive of current maturities................           39,218            33,168
Deferred income taxes..........................................           11,072            11,072
Other long-term liabilities....................................            2,456             2,456
                                                                        --------          --------
  Total liabilities............................................           97,146            90,949
                                                                        --------          --------

STOCKHOLDERS' EQUITY

Common stock, $.02 par value, 10,000,000 shares authorized,
   7,339,071 and 7,113,655 issued and outstanding..............              147               142
Capital in excess of par value.................................           35,748            35,064
Retained earnings..............................................           49,416            44,367
Stock option loans.............................................           (3,053)
                                                                        --------          --------
  Total stockholders' equity...................................           82,258            79,573
                                                                        --------          --------
                                                                        $179,404          $170,522
                                                                        ========          ========
</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>
<CAPTION>


                                                                            Three Months Ended
                                                                         -------------------------
                                                                         April 1,         March 27,
                                                                          2000              1999
                                                                         -------           -------
<S>                                                                     <C>               <C>
Net sales......................................................          $70,973           $63,661
Cost of sales..................................................           53,623            47,615
                                                                         -------           -------
  Gross profit.................................................           17,350            16,046

Selling, general and administrative expenses...................            8,365             8,241
                                                                         -------           -------
  Operating income.............................................            8,985             7,805

Other expense (income), net....................................              (25)              177
Interest expense...............................................              932               873
                                                                         -------           -------
  Income before income taxes...................................            8,078             6,755

Income taxes...................................................            3,029             2,567
                                                                         -------           -------
  Net income...................................................          $ 5,049           $ 4,188
                                                                         =======           =======
Earnings per share:

  Basic........................................................          $   .71           $   .59
                                                                         =======           =======
  Diluted......................................................          $   .66           $   .54
                                                                         =======           =======
Weighted average shares outstanding:

  Basic........................................................            7,142             7,089
                                                                         =======           =======
  Diluted......................................................            7,597             7,816
                                                                         =======           =======




</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)
                                                                            Three Months Ended
                                                                        --------------------------
                                                                        April 1,          March 27,
                                                                          2000              1999
                                                                        --------          --------
<S>                                                                    <C>               <C>
Cash flows from operating activities:

Cash received from customers...................................         $ 64,494          $ 58,337
Cash paid to suppliers and employees...........................          (64,496)          (55,282)
Interest paid..................................................             (829)             (924)
Income taxes received (paid), net..............................             (648)              376
                                                                        --------          --------
  Net cash provided (used) by operating activities.............           (1,479)            2,507
                                                                        --------          --------

Cash flows from investing activities:

Capital expenditures...........................................           (4,807)           (2,261)
Purchase of other assets.......................................                                (28)
                                                                        --------          --------
  Net cash used by investing activities........................           (4,807)           (2,289)
                                                                        --------          --------

Cash flows from financing activities:

Proceeds from revolving credit facility, net...................           10,336
Repayment of senior notes......................................           (4,286)           (4,285)
Purchase and retirement of common stock........................           (2,002)             (183)
Proceeds from exercised stock options..........................                9               278
                                                                        --------          --------
  Net cash provided (used) by financing activities.............            4,057            (4,190)
                                                                        --------          --------

Net decrease in cash...........................................           (2,229)           (3,972)
Cash at beginning of year......................................            3,597             6,791
                                                                        --------          --------
  Cash at end of quarter.......................................         $  1,368          $  2,819
                                                                        ========          ========

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

Net income.....................................................         $  5,049          $  4,188
Adjustments to reconcile net income to net
  cash provided by operating activities:
  Depreciation and amortization................................            1,863             1,493
  Loss on sale of assets.......................................                                106
  Changes in assets and liabilities:
    Accounts receivable........................................           (6,388)           (5,117)
    Inventories................................................           (5,143)              343
    Prepaid expenses and other current assets, net.............               64               (34)
    Accounts payable...........................................              316            (1,386)
    Accrued salaries, wages and benefits.......................              (93)             (217)
    Other accrued expenses.....................................            2,718             3,000
    Other assets...............................................              135               131
                                                                        --------          --------
Net cash provided (used) by operating activities...............         $ (1,479)         $  2,507
                                                                        ========          ========

</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  period  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)
                                                                        April 1,        December 31,
                                                                          2000              1999
                                                                        --------          --------
<S>                                                                    <C>               <C>

         Land and buildings....................................         $ 40,067          $ 35,871
         Machinery and equipment...............................           74,269            62,120
         Office fixtures and equipment.........................            1,742             1,732
         Construction in progress..............................            1,280            15,528
                                                                        --------          --------
           Property, plant and equipment, at cost..............          117,358           115,251
         Less accumulated depreciation.........................           44,868            43,151
                                                                        --------          --------
           Property, plant and equipment, net..................         $ 72,490          $ 72,100
                                                                        ========          ========
</TABLE>

 3.      Long-Term Debt
<TABLE>
<CAPTION>

                                                                       (Unaudited)
                                                                         April 1,       December 31,
                                                                           2000             1999
                                                                         -------          --------
<S>                                                                     <C>               <C>

         7.28% senior notes due March 15, 2004.................          $17,143           $21,429
         7.57% senior note due June 30, 2005...................            6,975             6,975
         7.43% senior notes due November 18, 2007..............           10,000            10,000
         Revolving credit facility.............................           10,336
                                                                         -------           -------
           Total...............................................           44,454            38,404
         Less current maturities...............................            5,236             5,236
                                                                         -------           -------
          Long-term debt, exclusive of current maturities......          $39,218           $33,168
                                                                         =======           =======
</TABLE>

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

4.       Stock Option Plan

The Company  maintains a Stock  Option Plan under which  holders of  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  April  1,  2000,
approximately $3.1 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>

                                                                         April 1,          March 27,
                                                                           2000              1999
                                                                          ------            ------
<S>                                                                       <C>               <C>

         Weighted average shares outstanding for basic
             calculation.......................................            7,142             7,089
         Add:  Effect of stock options.........................              455               727
                                                                          ------            ------
             Weighted average shares outstanding,
                adjusted for diluted calculation...............            7,597             7,816
                                                                           =====             =====

</TABLE>

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

Results of Operations

Net sales  increased  $7.3 million,  or 11.5%,  for the three month period ended
April 1, 2000, from the comparable  1999 period.  The increase was due primarily
to higher  unit volume in the  Company's  bedroom  and Young  America(TM)  youth
bedroom product lines.  During 1999, the Company completed expansion projects to
increase  production in response to the growing  demand for these 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.  This facility should provide $50-$60 million of sales capacity on an
annualized basis when in full production in two to three years.

Gross profit  margin for the three months of 2000  decreased to 24.4% from 25.2%
for the comparable 1999 period.  The decrease  resulted  primarily from start-up
expenses  associated  with the new facility  dedicated to the production of home
office furniture,  partially offset by improved operating  efficiencies at other
manufacturing facilities and stable raw material cost.

Selling,  general  and  administrative  expenses  as a  percentage  of net sales
decreased to 11.8% for the 2000 period from 12.9% in the comparable 1999 period.
The lower percentage was due principally to higher net sales in the 2000 period.

As a result of the above,  operating income increased to $9.0 million,  or 12.7%
of net sales,  from $7.8 million,  or 12.3% of net sales in the comparable  1999
period.

Interest expense for the three-month  period of 2000 approximates the comparable
1999 period.

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

Financial Condition, Liquidity and Capital Resources

The Company used cash from  operations of $1.5 million in the 2000 first quarter
compared to cash generated  from  operations of $2.5 million in the 1999 period.
Cash was required to fund  start-up of the new  facility,  increased  production
levels  at other  facilities  and  increased  tax  payments.  These  items  were
partially offset by increased receipts due to higher sales. 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 $4.8  million  in the 2000  period
compared  to $2.3  million  in the  1999  period.  Net  cash  used  for  capital
expenditures  in the 2000 period was $4.8  million.  This amount  reflects  $2.7
million of prior year  capital  expenditures  included  in  accounts  payable at
December 31, 1999 and $2.1 million of capital  expenditures  in the 2000 period.
Capital  expenditures  in each year were  primarily  for plant and equipment and
other assets in the normal course of business.  Capital expenditures in 2000 are
anticipated to be approximately $6-$7 million.

Net cash  provided by financing  activities  was $4.1 million in the 2000 period
compared  to cash  used by  financing  activities  of $4.2  million  in the 1999
period.  In the 2000 period,  borrowings  under the  revolving  credit  facility
provided  cash  for  operating   activities,   senior  debt  payments,   capital
expenditures  and the purchase and  retirement  of the  Company's  common stock.
During the three  months  ended  April 1, 2000,  the Company  purchased  112,000
shares of its stock on the open  market at an average  price of  $17.875.  Since
October  1998,  the Company has utilized  $12.3  million,  of the $20.0  million
authorization,  to purchase a total of 653,750  shares of its common stock at an
average price of $18.758 per share.

At April 1, 2000, long-term debt including current maturities was $44.5 million.
Debt service  requirements are $950,000 remaining in 2000, $6.7 million in 2001,
$17.2 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 April 1, 2000,  approximately  $23.7
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.

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 planned expansions and general economic conditions.

PART II.   OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K

(a)      Exhibits

         Exhibit        10.1  Sixth  Amendment,  dated  March 30,  2000,  to the
                        Second Amended and Restated  Revolving  Credit  Facility
                        and Term Loan Agreement  dated February 15, 1994,  among
                        the Registrant, National Bank of Canada. (1)

         Exhibit        10.2 Seventh  Amendment,  dated March 31,  2000,  to the
                        Second Amended and Restated  Revolving  Credit  Facility
                        and Term Loan Agreement  dated February 15, 1994,  among
                        the Registrant, National Bank of Canada. (1)

         Exhibit 27     Financial Data Schedule. (1)

(b)      Reports on Form 8-K

         None.

(1)      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 18, 2000                 By: /s/ Douglas I. Payne
                                     ------------------------
                                     Douglas I. Payne
                                     Sr. V.P. - Finance & Administration,
                                     Secretary and Treasurer
                                    (Principal Financial and Accounting Officer)