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 25, 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 October 4, 1999.


   Class                                                           Number

Common Stock, par value $.02 per share                        7,093,930 Shares



<PAGE>
<TABLE>

PART I. FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

                         STANLEY FURNITURE COMPANY, INC.
                                 BALANCE SHEETS
                        (In thousands, except share data)
<CAPTION>
                                                                            (Unaudited)
                                                                             September       December
                                                                              25, 1999       31, 1998
                                                                            ___________     _________
<S>                                                                         <C>            <C>
ASSETS
Current assets:
  Cash....................................................................  $    3,295      $   6,791
  Accounts receivable, less allowances of $2,314 and $1,906...............      35,262         29,141
  Inventories:
    Finished goods........................................................      22,898         22,853
    Work-in-process.......................................................       8,063          7,495
    Raw materials.........................................................      11,310         16,166
                                                                            ___________     _________
                                                                                42,271         46,514
  Prepaid expenses and other current assets...............................       1,023            903
  Deferred income taxes...................................................       2,429          1,980
                                                                            ___________     _________
    Total current assets..................................................      84,280         85,329
Property, plant and equipment, net........................................      63,651         52,474
Goodwill, less accumulated amortization of $3,612 and $3,360..............       9,828         10,080
Other assets..............................................................       6,090          6,491
                                                                            ___________     _________
                                                                            $  163,849      $ 154,374
                                                                            ===========     =========
LIABILITIES
Current liabilities:
  Current maturities of long-term debt....................................  $    5,236      $   5,136
  Accounts payable........................................................      23,061         21,837
  Accrued salaries, wages and benefits....................................      12,756         11,939
  Other accrued expenses..................................................       2,225          2,009
                                                                            ___________     _________
    Total current liabilities.............................................      43,278         40,921
Long-term debt, exclusive of current maturities...........................      33,168         38,403
Deferred income taxes.....................................................      11,550         10,694
Other long-term liabilities...............................................       1,988          1,988
                                                                            ___________     _________
  Total liabilities.......................................................      89,984         92,006
                                                                            ___________     _________

STOCKHOLDERS' EQUITY
Common stock, $.02 par value, 10,000,000  shares authorized,
  7,093,930 and 7,069,715 shares issued and outstanding...................         142            141
Capital in excess of par value............................................      35,029         37,073
Retained earnings ........................................................      38,694         25,154
                                                                            ___________     _________
  Total stockholders' equity..............................................      73,865         62,368
                                                                            ___________     _________
                                                                            $  163,849      $ 154,374
                                                                            ===========     =========

</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              Nine Months
                                                                         Ended                     Ended
                                                                September     September    September   September
                                                                 25, 1999      26, 1998     25, 1999    26, 1998
                                                                _________     _________    _________   _________

<S>                                                              <C>           <C>         <C>         <C>
Net sales.................................................       $65,319       $63,832     $192,364    $183,386

Cost of sales.............................................        48,203        48,449      142,758     138,585
                                                                _________     _________    _________   _________

  Gross profit............................................        17,116        15,383       49,606      44,801

Selling, general and administrative expenses..............         8,400         8,209       25,051      24,310
                                                                _________     _________    _________   _________

  Operating income........................................         8,716         7,174       24,555      20,491

Other expense, net........................................            28           159          335         242
Interest expense..........................................           872         1,035        2,619       3,221
                                                                _________     _________    _________   _________

  Income before income taxes..............................         7,816         5,980       21,601      17,028

Income taxes..............................................         2,859         2,274        8,061       6,472
                                                                _________     _________    _________   _________

  Net income..............................................       $ 4,957       $ 3,706     $ 13,540    $ 10,556
                                                                =========     =========    =========   =========

Earnings per share:

  Basic...................................................       $   .69       $   .52     $   1.90    $   1.51
  Diluted.................................................       $   .64       $   .46     $   1.74    $   1.32

Weighted average shares outstanding:

  Basic...................................................         7,141         7,144        7,125       7,005
  Diluted.................................................         7,762         8,063        7,804       8,003


</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>
                                                                                  Nine Months Ended
                                                                             September          September
                                                                              25, 1999           26, 1998
                                                                             _________          _________
<S>                                                                          <C>                <C>
Cash flows from operating activities:
Cash received from customers...........................................      $ 186,058          $ 173,838
Cash paid to suppliers and employees...................................       (156,502)          (155,948)
Interest paid..........................................................         (2,915)            (3,545)
Income taxes paid, net.................................................         (6,667)            (5,530)
                                                                             _________          _________
  Net cash provided by operating activities............................         19,974              8,815
                                                                             _________          _________

Cash flows from investing activities:
Capital expenditures...................................................        (15,475)            (4,000)
Other, net.............................................................           (157)               (13)
                                                                             _________          _________
  Net cash used by investing activities................................        (15,632)            (4,013)
                                                                             _________          _________

Cash flows from financing activities:
Purchase and retirement of common stock................................         (4,438)
Repayment of revolving credit facility.................................                              (950)
Repayment of Senior Notes..............................................         (5,135)            (5,086)
Proceeds from insurance policy loans...................................            596                536
Proceeds from exercised stock options..................................          1,139              1,518
                                                                             _________          _________
  Net cash used by financing activities................................         (7,838)            (3,982)
                                                                             _________          _________

Net increase (decrease) in cash........................................         (3,496)               820
Cash at beginning of year..............................................          6,791                756
                                                                             _________          _________
  Cash at end of period................................................      $   3,295          $   1,576
                                                                             =========          =========

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

Net income.............................................................      $  13,540          $  10,556
Adjustments to reconcile net income to net
  cash provided by operating activities:
  Depreciation and amortization........................................          4,566              4,315
  Other, net...........................................................            131                132
  Changes in assets and liabilities:
    Accounts receivable................................................         (6,121)            (9,251)
    Inventories........................................................          4,243                534
    Prepaid expenses and other current assets..........................           (187)              (483)
    Accounts payable...................................................          1,224                637
    Accrued salaries, wages and benefits...............................            817              1,046
    Other accrued expenses.............................................          1,466              1,970
    Deferred income taxes..............................................            407               (549)
    Other assets.......................................................           (112)               (92)
                                                                             _________          _________
Net cash provided by operating activities..............................      $  19,974          $   8,815
                                                                             =========          =========
</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.

 2.      Property, Plant and Equipment
<TABLE>
<CAPTION>
                                                                  (Unaudited)
                                                                   September         December
                                                                    25, 1999         31, 1998
                                                                   _________         ________
<S>                                                                 <C>              <C>
         Land and buildings....................................     $ 34,981         $ 34,699
         Machinery and equipment...............................       60,979           51,728
         Office fixtures and equipment.........................        1,772            1,772
         Construction in progress..............................        7,524            1,876
                                                                   _________         ________
             Property, plant and equipment, at cost............      105,256           90,075
         Less accumulated depreciation.........................       41,605           37,601
                                                                   _________         ________
                                                                    $ 63,651         $ 52,474
                                                                   =========         ========

 3.      Long-Term Debt

                                                                  (Unaudited)
                                                                   September         December
                                                                    25, 1999          31,1998
                                                                   _________         ________

         7.28% senior notes due March 15, 2004.................     $ 21,429         $ 25,714
         7.57% senior note due June 30, 2005...................        6,975            7,825
         7.43% senior notes due November 18, 2007..............       10,000           10,000
                                                                   _________         ________
           Total...............................................       38,404           43,539
         Less current maturities...............................        5,236            5,136
                                                                   _________         ________
                                                                    $ 33,168         $ 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                 Nine Months
                                                                   Ended                        Ended
                                                          September     September      September   September
                                                           25, 1999      26, 1998       25, 1999    26, 1998
                                                          _________     _________      _________   _________
<S>                                                         <C>           <C>            <C>        <C>
      Weighted average shares outstanding
          for basic calculation......................        7,141         7,144          7,125       7,005
      Add:  Effect of stock options..................          621           919            679         998
                                                          _________     _________      _________   _________
          Weighted average shares outstanding,
              adjusted for diluted calculation.......        7,762         8,063          7,804       8,003
                                                          =========     =========      =========   =========

</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 2.3%,  for the three month period ended
September 25, 1999 from the comparable  1998 period.  For the nine month period,
net sales increased $9.0 million,  or 4.9%, from the comparable 1998 period. The
Company closed its upholstery  operations in the second half of 1998.  Excluding
upholstery  sales for the three and nine month periods of 1998,  wood  furniture
sales  increased 4.1% and 7.6% in the 1999 periods,  respectively.  The increase
was due to higher  unit volume and to a lesser  extent  higher  average  selling
prices. Shipments in the 1999 periods were limited by capacity constraints.

Gross profit  margins for the three and nine month periods of 1999  increased to
26.2% and  25.8%,  respectively,  from 24.1% and 24.4% 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 as a percentage of net sales for
the three and nine month  periods  of 1999 were  12.9% and 13.0%,  respectively,
compared  to  12.9%  and  13.3%  for the  comparable  1998  periods.  The  lower
year-to-date  percentage  in 1999  was 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 nine month periods of 1999 increased to 13.3% and 12.8%, respectively,
from 11.2% of net sales for both the comparable periods.

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

The Company's effective income tax rate declined to 37.3% for the 1999 nine
month period from 38.0% in 1998, due to lower state tax expense.

Financial Condition, Liquidity and Capital Resources

Cash  generated  from  operations  increased to $20.0 million in the 1999 period
compared to $8.8 million in the 1998 period,  due primarily to increased  sales.
The cash  generated  in the 1999 period was used to fund  capital  expenditures,
reduce borrowings and repurchase the Company's common stock.

Net cash used by investing  activities  increased  to $15.6  million in the 1999
period  from $4.0  million in the 1998  period,  due  principally  to  increased
capital expenditures. The 1999 increase in capital expenditures is primarily for
capacity  expansion  projects.  The  Company  estimates  the total cost of these
projects to be approximately $25 million,  of which a majority is expected to be
incurred in 1999.  Approximately  $10 million is being 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 currently being phased in
and will allow the  Company to  increase  production  for its  bedroom and Young
AmericaTM  youth bedroom  products.  Approximately  $15 million is being 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.  Including  expenditures  related to the
expansion  projects,   capital  expenditures  in  1999  are  anticipated  to  be
approximately $26 million. 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 $7.8  million  in the 1999  period
compared to $4.0 million in the 1998 period. In the 1999 period, the purchase of
common stock and reduction in borrowings  were financed by cash  generated  from
operations and proceeds from the exercise of stock options.  In the 1998 period,
cash generated  from  operations and proceeds from the exercise of stock options
were used to reduce borrowings.

In October 1998,  the Company's  Board of Directors  authorized the use of up to
$10  million to  repurchase  shares of its common  stock.  In August  1999,  the
Company's  Board  of  Directors  increased  the  authorization  to $20  million.
Consequently,  the Company may,  from time to time,  either  directly or through
agents,  repurchase  its  common  stock in the open  market  through  negotiated
purchases or otherwise,  at prices and on terms satisfactory to the Company. The
Company has utilized $10 million to purchase  526,750 shares of its common stock
at an average  price of $18.97  per share,  including  the  purchase  of 211,750
shares at an  average  price of $20.96 per share  during  the nine month  period
ended  September  25,  1999.  Depending  on market  prices and other  conditions
relevant to the Company, such purchases may be discontinued at any time.

At September 25, 1999,  long-term  debt including  current  maturities was $38.4
million and approximately $24.0 million of additional  borrowings were available
under the Company's  revolving  credit facility.  Debt service  requirements are
$5.2  million in 2000,  $6.7  million in 2001,  $6.8  million in 2002,  and $6.9
million in 2003. The Company believes that its financial  resources are adequate
to support its capital needs,  debt service  requirements  and stock  repurchase
programs.

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 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,
delays in construction or obtaining  necessary  permits for planned  expansions,
and general economic conditions.











PART II.  OTHER INFORMATION

Item 1.  Legal Proceedings

         On July 9, 1999,  the United  States  Environmental  Protection  Agency
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.  The Company
intends to vigorously contest the complaint and in August 1999 filed its
answer seeking an  elimination of the civil fine. The Company  believes that the
cost related to the complaint  will not have a material  adverse  effect on the
Company's financial condition or results of operations.

Item 5.  Other Information

         In July 1999, the number of directors  constituting the Company's Board
of Directors was increased to six and Robert G. Culp, III was elected a director
with a term  expiring at the 2002 Annual  Meeting of  Stockholders.  Mr. Culp is
Chairman of the Board and Chief Executive  Officer and a director of Culp, Inc.,
a  manufacturer  and  marketer of  furniture  upholstery  fabrics  and  mattress
fabrics.

Item 6.  Exhibits and Reports on Form 8-K

(a)      Exhibits

         Exhibit 27.1   Financial Data Schedule for the quarter ended
                        September 25, 1999.*

(b)      Reports on Form 8-K
         A report on Form 8-K was  filed on  August  30,  1999 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 12, 1999                By:/s/Douglas I. Payne
                                      ______________________________________
                                      Douglas I. Payne
                                      Sr. V.P. - Finance and Administration,
                                                 Secretary and Treasurer
                                                 (Principal Financial and
                                                  Accounting Officer)