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 July 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 July 1, 2000.

                Class                                             Number
Common Stock, par value $.02 per share                        7,348,983  Shares





<PAGE>








PART I.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

                         STANLEY FURNITURE COMPANY, INC.
                                 BALANCE SHEETS
                        (in thousands, except share data)
<TABLE>
<CAPTION>
                                                                      (unaudited)
                                                                        July 1,      December 31,
                                                                          2000           1999
                                                                        --------       --------
<S>                                                                    <C>            <C>
ASSETS
Current assets:
  Cash.........................................................         $  1,323       $  3,597
  Accounts receivable, less allowances of $2,320 and $2,050....           35,998         32,133
  Inventories:
    Finished goods.............................................           28,626         22,393
    Work-in-process............................................            9,542          8,432
    Raw materials..............................................           16,201         12,755
                                                                        --------       --------
                                                                          54,369         43,580
  Prepaid expenses and other current assets....................            1,525          1,011
  Deferred income taxes........................................            2,463          2,463
                                                                        --------       --------
    Total current assets.......................................           95,678         82,784
Property, plant and equipment, net.............................           71,741         72,100
Goodwill, less accumulated amortization of $3,864 and $3,696...            9,576          9,744
Other assets...................................................            5,503          5,894
                                                                        --------       --------
                                                                        $182,498       $170,522
                                                                        ========       ========
LIABILITIES
Current liabilities:
  Current maturities of long-term debt.........................         $  5,286       $  5,236
  Accounts payable.............................................           23,814         25,836
  Accrued salaries, wages and benefits.........................           11,975         10,864
  Other accrued expenses.......................................            2,358          2,317
                                                                        --------       --------
    Total current liabilities..................................           43,433         44,253
Long-term debt, exclusive of current maturities................           37,882         33,168
Deferred income taxes..........................................           11,072         11,072
Other long-term liabilities....................................            2,456          2,456
                                                                        --------       --------
  Total liabilities............................................           94,843         90,949
                                                                        --------       --------

STOCKHOLDERS' EQUITY
Common stock, $.02 par value, 10,000,000  shares authorized,
   7,348,983 and 7,113,655 shares issued and outstanding.......              147            142
Capital in excess of par value.................................           35,851         35,064
Retained earnings .............................................           54,527         44,367
Stock option loans ............................................           (2,870)
                                                                        --------       --------
  Total stockholders' equity...................................           87,655         79,573
                                                                        --------       --------
                                                                        $182,498       $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             Six Months
                                                             Ended                   Ended
                                                      -------------------      ------------------
                                                      July 1,     June 26,      July 1,     June 26,
                                                       2000         1999         2000         1999
                                                      -------      -------     --------     --------
<S>                                                  <C>          <C>         <C>          <C>
Net sales.......................................      $72,118      $63,384     $143,091     $127,045

Cost of sales...................................       54,310       46,940      107,933       94,555
                                                      -------      -------     --------     --------

    Gross profit................................       17,808       16,444       35,158       32,490


Selling, general and administrative expenses....        8,623        8,410       16,988       16,651
                                                      -------      -------     --------     --------

    Operating income............................        9,185        8,034       18,170       15,839

Other expense, net..............................            9          129          (16)         306
Interest expense................................          994          875        1,926        1,748
                                                      -------      -------     --------     --------

    Income before income taxes..................        8,182        7,030       16,260       13,785

Income taxes....................................        3,071        2,635        6,100        5,202
                                                      -------      -------     --------     --------

    Net income..................................      $ 5,111      $ 4,395     $ 10,160     $  8,583
                                                      =======      =======     ========     ========

Earnings per share:

    Basic.......................................      $   .70      $   .62     $   1.41     $   1.21
                                                      =======      =======     ========     ========
    Diluted.....................................      $   .67      $   .56     $   1.33     $   1.10
                                                      =======      =======     ========     ========

Weighted average shares outstanding:

    Basic.......................................        7,346        7,139        7,230        7,113
                                                      =======      =======     ========     ========
    Diluted.....................................        7,643        7,829        7,624        7,823
                                                      =======      =======     ========     ========

</TABLE>





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


<PAGE>


                         STANLEY FURNITURE COMPANY, INC.
                            STATEMENTS OF CASH FLOWS
                                   (unaudited)
                                 (in thousands)
<TABLE>
<CAPTION>
                                                                           Six Months Ended
                                                                       -------------------------
                                                                        July 1,        June 26,
                                                                         2000            1999
                                                                       ---------       ---------
<S>                                                                   <C>             <C>
Cash flows from operating activities:

Cash received from customers...................................        $ 139,236       $ 122,522
Cash paid to suppliers and employees...........................         (131,007)       (105,936)
Interest paid..................................................           (2,277)         (1,306)
Income taxes paid, net.........................................           (5,754)         (4,416)
                                                                       ---------       ---------
    Net cash provided by operating activities..................              198          10,864
                                                                       ---------       ---------

Cash flows from investing activities:

Capital Expenditures...........................................           (6,137)        (10,998)
                                                                       ---------       ---------
    Net cash used by investing activities......................           (6,137)        (10,998)
                                                                       ---------       ---------

Cash flows from financing activities:

Proceeds from revolving credit facility, net...................           10,000             850
Repayment of Senior Notes......................................           (5,236)         (4,285)
Purchase and retirement of common stock........................           (2,002)         (1,935)
Proceeds from exercised stock options..........................              264             633
Proceeds from insurance policy loans...........................              639
                                                                       ---------       ---------
Net cash used by financing activities..........................            3,665          (4,737)
                                                                       ---------       ---------

Net decrease in cash...........................................           (2,274)         (4,871)
Cash at beginning of period....................................            3,597           6,791
                                                                       ---------       ---------
    Cash at end of period......................................        $   1,323       $   1,920
                                                                       =========       =========

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

Net income.....................................................        $  10,160       $   8,583
Adjustments to reconcile net income to net
    cash provided by operating activities:
    Depreciation and amortization..............................            3,944           3,016
    Loss on sale of assets.....................................               54             131
    Changes in assets and liabilities:
        Accounts receivable....................................           (3,865)         (4,405)
        Inventories............................................          (10,788)          2,371
        Prepaid expenses and other current assets..............             (985)           (185)
        Accounts payable.......................................              678          (1,025)
        Accrued salaries, wages and benefits...................              197             755
        Other accrued expenses.................................            1,104           1,362
        Other assets...........................................             (301)            261
                                                                       ---------       ---------
Net cash provided by operating activities......................        $     198       $  10,864
                                                                       =========       =========
</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)
                                                                        July 1,      December 31,
                                                                          2000           1999
                                                                        --------       --------

<S>                                                                     <C>            <C>
         Land and buildings....................................         $ 41,254       $ 35,871
         Machinery and equipment...............................           74,245         62,120
         Office fixtures and equipment.........................            1,819          1,732
         Construction in progress..............................              886         15,528
                                                                        --------       --------
           Property, plant and equipment, at cost..............          118,204        115,251
         Less accumulated depreciation.........................           46,463         43,151
                                                                        --------       --------
                                                                        $ 71,741       $ 72,100
                                                                        ========       ========
</TABLE>


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

                                                                       (Unaudited)
                                                                         July 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...................            6,025          6,975
         7.43% senior notes due November 18, 2007..............           10,000         10,000
             Revolving credit facility.........................           10,000
                                                                         -------        -------
                 Total.........................................           43,168         38,404
             Less current maturities...........................            5,286          5,236
                                                                         -------        -------
                                                                         $37,882        $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 certain
exercisable stock options may obtain  interest-bearing loans from the Company to
facilitate  their  exercise  of stock  options.  Such  loans  are  evidenced  by
promissory  notes and are  collateralized  by the shares of stock. As of July 1,
2000, approximately $2.9 million in stock option loans are outstanding.

5.       Earnings Per Common Share

Basic  earnings  per common  share are based upon the  weighted  average  shares
outstanding.  Outstanding  stock options are treated as common stock equivalents
for purposes of computing diluted earnings per share. Basic and diluted earnings
per share are calculated using the following share data (unaudited):

<TABLE>
<CAPTION>
                                                             Three Months             Six Months
                                                                Ended                    Ended
                                                        --------------------       ------------------
                                                        July 1,     June 26,       July 1,   June 26,
                                                         2000        1999           2000       1999
                                                         -----       -----          -----      -----
<S>                                                     <C>         <C>            <C>        <C>

   Weighted average shares outstanding
       for basic calculation.....................        7,346       7,139          7,230      7,113
   Add:   Effect of stock options................          297         690            394        710
                                                        ------       -----          -----      -----
       Weighted average shares outstanding,
          adjusted for diluted calculation.......        7,643       7,829          7,624      7,823
                                                         =====       =====          =====      =====
</TABLE>


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

Results of Operations

Net sales  increased  $8.7 million,  or 13.8%,  for the three month period ended
July 1, 2000 from the  comparable  1999 period.  For the six month  period,  net
sales  increased $16 million,  or 12.6%,  from the comparable  1999 period.  The
increase  was due  primarily  to  higher  unit  volume  in the  Company's  Young
America(TM) youth bedroom,  home office and bedroom product lines.  During 1999,
the Company completed  expansion projects to increase  production in response to
the growing demand for its bedroom and Young  America(TM)  youth bedroom product
lines. During the first quarter of 2000, the Company commenced operations at its
new  manufacturing  facility in  response to the growing  demand for home office
furniture.  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 and six month  periods of 2000  decreased to
24.7% and  24.6%,  respectively,  from 25.9% and 25.6% for the  comparable  1999
periods.  The decrease resulted primarily from start-up expenses associated with
the new facility dedicated to the production of home office furniture, partially
offset by improved operating efficiencies at other manufacturing  facilities and
to a lesser  extent,  stable raw  material  cost.  However,  the  Company  began
experiencing  higher raw material cost,  principally  lumber,  during the second
quarter of 2000 and expects this trend to continue in the second half of 2000.

Selling, general and administrative expenses for the three and six month periods
of 2000 as a percentage of net sales decreased to 12.0% and 11.9%, respectively,
from 13.3% and 13.1% for the comparable 1999 periods.  The lower  percentages in
2000 were due  principally to higher net sales.  The increased  expenditures  in
2000  were  primarily  selling  expenses  directly  attributable  to  the  sales
increase.

As a result of the  above,  operating  income as a  percentage  of net sales was
12.7%  for the  three  and  six  month  periods  of 2000  and  approximated  the
comparable prior year periods.

Interest  expense  for the  2000  three  and six  month  periods  increased  due
primarily to higher average debt levels.

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

Financial Condition, Liquidity and Capital Resources

During the first half of 2000, the Company used cash  generated from  operations
to fund start-up of the new manufacturing  facility  dedicated to the production
of home office furniture,  increased inventory levels and increased interest and
tax payments.  These items were  partially  offset by increased  receipts due to
higher sales.  In 1999, cash generated from operations of $10.9 million was used
to fund capital requirements and reduce borrowings.

Net cash  used by  investing  activities  was $6.1  million  in the 2000  period
compared  to  $11.0  million  in the 1999  period.  Net  cash  used for  capital
expenditures  in the 2000 period was $6.1  million,  reflecting  $2.7 million of
prior year  capital  expenditures  included in accounts  payable at December 31,
1999 and $3.4  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 $3.7 million in the 2000 period
compared  to cash  used by  financing  activities  of $4.7  million  in the 1999
period.  In the 2000 period,  borrowings  under the  revolving  credit  facility
provided cash for senior debt payments,  capital  expenditures  and the purchase
and retirement of the Company's  common stock.  During the six months ended July
1, 2000, the Company purchased 112,000 shares of its stock on the open market at
an average price of $17.88.  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 $18.76 per share.

At July 1, 2000,  long-term debt including current maturities was $43.2 million.
Debt service  requirements are $6.7 million in 2001, $16.8 million in 2002, $6.9
million in 2003, and $7.0 million in 2004. In March 2000,  the revolving  credit
facility  was amended to increase  available  borrowings  from $25.0  million to
$35.0  million.  As of July 1, 2000,  approximately  $24.0 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, 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 19, 2000.

(c)(i)   The  stockholders of the Company elected two directors for a three-year
         term expiring at the Annual Meeting of Stockholders to be held in 2003.
         The election was approved by the following vote:
<TABLE>
<CAPTION>

                                                          For           Withheld
                                                       ---------        --------
<S>                                                   <C>                <C>

         David V. Harkins                              6,019,968          27,850


         Albert L. Prillaman                           6,020,075          27,743


</TABLE>

Item 6.  Exhibits and Reports on Form 8-K

(a)      Exhibits

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