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| Virginia                                                       | 54-0251350                        |
|----------------------------------------------------------------|-----------------------------------|
| (State or other jurisdiction of incorporation or organization) | (IRS employer identification no.) |

| Large accelerated Filer  ̈                                             | Accelerated filer x              |   |
|----------------------------------------------------------------------------|----------------------------------|--------|
| Non-accelerated Filer  ̈ (Do not check if a smaller reporting company) | Smaller reporting company  ̈ |   |

| Common stock, no par value                | 10,771,912         |
|-------------------------------------------|--------------------|
|    (Class of common stock) | (Number of shares) |

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Table of Contents

TAB

|                                     |                                                                                  |   |
|------------------------------------------|---------------------------------------------------------------------------------------|--------|
|                                     |                                                                                  |   |
| PART I   Financial Information |                                                                                  |
|                                     |                                                                                  |   |
| Item 1.                                  | Financial Statements                                                                  | 3      |
| Item 2.                                  | Management's Discussion and Analysis of Financial Condition and Results of Operations | 12     |
| Item 3.                                  | Quantitative and Qualitative Disclosures about Market Risk                            | 19     |
| Item 4                                   | Controls and Procedures                                                               | 19     |
|                                     |                                                                                  |   |
| PART II  Other Information          |                                                                                  |
|                                     |                                                                                  |   |
| Item 4.                                  | Submission of Matters to Vote of Security Holders                                     | 20     |
| Item 5.                                  | Other Information                                                                     | 20     |
| Item 6.                                  | Exhibits                                                                              | 20     |
| Signatures                               | 21                                                                                    |
|                                     |

----

Table of Contents

| Item 1. | Financial Statements |
|---------|----------------------|

HOO

|                                                                        |   | August 2, |    |   | February 1, |   |
|-----------------------------------------------------------------------------|--------|-----------|---------|--------|-------------|--------|
|                                                                        |   | 2009      |    |   | 2009        |   |
| Assets                                                                      |   |      |    |   |        |   |
| Current assets                                                              |   |      |    |   |        |   |
|    Cash and cash equivalents                                 |   | $         | 35,309  |   |        | $      | 11,804 |   |
|    Accounts receivable, less allowance for doubtful accounts |   |      |    |   |        |   |   |   |
|    of $1,673 and $2,207 on each date                         |   |      | 23,144  |   |        |   | 30,261 |   |
|    Inventories                                               |   |      | 41,518  |   |        |   | 60,248 |   |
|    Prepaid expenses and other current assets                 |   |      | 5,361   |   |        |   | 4,736 |   |
|    Total current assets                                      |   |      | 105,332 |   |        |   | 107,049 |   |
| Property, plant and equipment, net                                          |   |      | 24,118  |   |        |   | 24,596 |   |
| Intangible assets                                                           |   |      | 4,175   |   |        |   | 4,805 |   |
| Cash surrender value of life insurance policies                             |   |      | 14,007  |   |        |   | 13,513 |   |
| Other assets                                                                |   |      | 3,581   |   |        |   | 3,504 |   |
|    Total assets                                              |   | $         | 151,213 |   |        | $      | 153,467 |   |
|                                                                        |   |      |    |   |        |   |   |   |
| Liabilities and Shareholders’ Equity                                  |   |      |    |   |        |   |   |   |
| Current liabilities                                                         |   |      |    |   |        |   |   |   |
|    Trade accounts payable                                    |   | $         | 7,718   |   |        | $      | 8,392 |   |
|    Accrued salaries, wages and benefits                      |   |      | 2,570   |   |        |   | 2,218 |   |
|    Other accrued expenses                                    |   |      | 2,777   |   |        |   | 2,279 |   |
|    Short-term borrowing                                      |   |      | 2,650   |   |        |   |   |   |
|    Current maturities of long-term debt                      |   |      | 3,795   |   |        |   | 2,899 |   |
|    Total current liabilities                                 |   |      | 19,510  |   |        |   | 15,788 |   |
| Long-term debt, excluding current maturities                                |   |      |    |   |        |   | 2,319 |   |
| Deferred compensation                                                       |   |      | 6,099   |   |        |   | 5,606 |   |
| Other long-term liabilities                                                 |   |      | 16      |   |        |   | 44 |   |
|    Total liabilities                                         |   |      | 25,625  |   |        |   | 23,757 |   |
|                                                                        |   |      |    |   |        |   |   |   |
| Shareholders’ equity                                                  |   |      |    |   |        |   |   |   |
|    Common stock, no par value, 20,000 shares authorized,     |   |      |    |   |        |   |   |   |
|    10,772 shares issued and outstanding on each date         |   |      | 17,035  |   |        |   | 16,995 |   |
|    Retained earnings                                         |   |      | 108,299 |   |        |   | 112,450 |   |
|    Accumulated other comprehensive income                    |   |      | 254     |   |        |   | 265 |   |
|    Total shareholders’ equity                          |   |      | 125,588 |   |        |   | 129,710 |   |
|    Total liabilities and shareholders’ equity          |   | $         | 151,213 |   |        | $      | 153,467 |   |

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HOO

|                                                |   | Thirteen Weeks Ended |   |   | Twenty-Six Weeks Ended |   |
|-----------------------------------------------------|--------|----------------------|--------|--------|------------------------|--------|
|                                                |   | August 2,            |   |   | August 3,              |   |   | August 2, |   |   | August 3, |   |
|                                                |   | 2009                 |   |   | 2008                   |   |   | 2009 |   |   | 2008 |   |
|                                                |   |                 |   |   |                   |   |   |   |   |   |   |   |
| Net sales                                           |   | $                    | 45,978 |   |                   | $      | 64,628 |   |   | $ | 98,041 |   |   | $ | 135,655 |   |
| Cost of sales                                       |   |                 | 36,283 |   |                   |   | 50,501 |   |   |   | 77,119 |   |   |   | 104,792 |   |
|                                                |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|    Gross profit                      |   |                 | 9,695  |   |                   |   | 14,127 |   |   |   | 20,922 |   |   |   | 30,863 |   |
|                                                |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Selling and administrative expenses                 |   |                 | 10,254 |   |                   |   | 11,264 |   |   |   | 21,435 |   |   |   | 24,050 |   |
|                                                |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Restructuring and asset impairment (credit) charge  |   |                 | (60    | )      |                   |   | (258 | ) |   |   | 613 |   |   |   | (258 | ) |
|                                                |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|    Operating (loss) income           |   |                 | (499   | )      |                   |   | 3,121 |   |   |   | (1,126 | ) |   |   | 7,071 |   |
|                                                |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Other (expense) income, net                         |   |                 | (26    | )      |                   |   | 168 |   |   |   | (29 | ) |   |   | 355 |   |
|                                                |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|    (Loss) income before income taxes |   |                 | (525   | )      |                   |   | 3,289 |   |   |   | (1,155 | ) |   |   | 7,426 |   |
|                                                |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Income tax (benefit) expense                        |   |                 | (62    | )      |                   |   | 1,215 |   |   |   | (236 | ) |   |   | 2,747 |   |
|                                                |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|    Net (loss) income                 |   | $                    | (463   | )      |                   | $      | 2,074 |   |   | $ | (919 | ) |   | $ | 4,679 |   |
|                                                |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| (Loss) earnings per share:                          |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|    Basic                             |   | $                    | (0.04  | )      |                   | $      | 0.18 |   |   | $ | (0.09 | ) |   | $ | 0.41 |   |
|    Diluted                           |   | $                    | (0.04  | )      |                   | $      | 0.18 |   |   | $ | (0.09 | ) |   | $ | 0.41 |   |
|                                                |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding:                |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|    Basic                             |   |                 | 10,752 |   |                   |   | 11,234 |   |   |   | 10,752 |   |   |   | 11,383 |   |
|    Diluted                           |   |                 | 10,752 |   |                   |   | 11,240 |   |   |   | 10,752 |   |   |   | 11,390 |   |
|                                                |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Cash dividends declared per share                   |   | $                    | 0.10   |   |                   | $      | 0.10 |   |   | $ | 0.20 |   |   | $ | 0.20 |   |

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HOO

|                                                                             |   | Twenty Six Weeks Ended |    |
|----------------------------------------------------------------------------------|--------|------------------------|---------|
|                                                                             |   | August 2,              |    |   | August 3, |   |
|                                                                             |   | 2009                   |    |   | 2008 |   |
| Cash flows from operating activities                                             |   |                   |    |   |   |   |
|    Cash received from customers                                   |   | $                      | 105,197 |   |   | $ | 140,545 |   |
|    Cash paid to suppliers and employees                                |   |                   | (77,914 | ) |   |   | (133,656 | ) |
|    Income taxes paid, net                                              |   |                   | (1,021  | ) |   |   | (4,428 | ) |
|    Interest (paid) received, net                                       |   |                   | (278    | ) |   |   | 286 |   |
|    Net cash provided by operating activities                      |   |                   | 25,984  |   |   |   | 2,747 |   |
|                                                                             |   |                   |    |   |   |   |   |   |
| Cash flows from investing activities                                             |   |                   |    |   |   |   |   |   |
|    Purchase of property, plant and equipment                      |   |                   | (1,292  | ) |   |   | (1,303 | ) |
|    Proceeds received on the sale of property and equipment        |   |                   | 13      |   |   |   | 7 |   |
|    Additional payments related to the acquisition of Opus Designs |   |                   |    |   |   |   | (181 | ) |
|    Premiums paid on life insurance policies                       |   |                   | (1,259  | ) |   |   | (1,202 | ) |
|    Proceeds received on life insurance policies                   |   |                   | 986     |   |   |   | 357 |   |
|    Net cash used in investing activities                          |   |                   | (1,552  | ) |   |   | (2,322 | ) |
|                                                                             |   |                   |    |   |   |   |   |   |
| Cash flows from financing activities                                             |   |                   |    |   |   |   |   |   |
|    Proceeds from short-term borrowing                             |   |                   | 4,532   |   |   |   |   |   |
|    Payments on short-term borrowing                               |   |                   | (1,882  | ) |   |   |   |   |
|    Payments on long-term debt                                     |   |                   | (1,423  | ) |   |   | (1,322 | ) |
|    Purchases and retirement of common stock                       |   |                   |    |   |   |   | (14,073 | ) |
|    Cash dividends paid                                            |   |                   | (2,154  | ) |   |   | (2,307 | ) |
|    Net cash used in financing activities                          |   |                   | (927    | ) |   |   | (17,702 | ) |
|                                                                             |   |                   |    |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                             |   |                   | 23,505  |   |   |   | (17,277 | ) |
| Cash and cash equivalents at beginning of period                                 |   |                   | 11,804  |   |   |   | 33,076 |   |
| Cash and cash equivalents at end of period                                       |   | $                      | 35,309  |   |   | $ | 15,799 |   |
|                                                                             |   |                   |    |   |   |   |   |   |
| Reconciliation of net income to net cash provided                                |   |                   |    |   |   |   |   |   |
|    by operating activities                                        |   |                   |    |   |   |   |   |   |
| Net (loss) income                                                                |   | $                      | (919    | ) |   | $ | 4,679 |   |
|    Depreciation and amortization                                  |   |                   | 1,506   |   |   |   | 1,328 |   |
|    Non-cash restricted stock awards and performance grants        |   |                   | 40      |   |   |   | 36 |   |
|    Provision for doubtful accounts                                |   |                   | 601     |   |   |   | 588 |   |
|    Deferred income tax (benefit) expense                               |   |                   | (964    | ) |   |   | 258 |   |
|    Restructuring and asset impairment charge                           |   |                   | 613     |   |   |   | (258 | ) |
|    Loss on disposal of property                                        |   |                   | 101     |   |   |   | 123 |   |
|    Changes in assets and liabilities:                                  |   |                   |    |   |   |   |   |   |
|      Accounts receivable                                     |   |                   | 6,516   |   |   |   | 4,150 |   |
|      Inventories                                             |   |                   | 18,730  |   |   |   | (7,201 | ) |
|      Prepaid expenses and other assets                       |   |                   | 214     |   |   |   | (219 | ) |
|      Trade accounts payable                                  |   |                   | (674    | ) |   |   | 345 |   |
|      Accrued salaries, wages and benefits                    |   |                   | 352     |   |   |   | (560 | ) |
|      Other accrued expenses                                  |   |                   | (580    | ) |   |   | (996 | ) |
|      Other long-term liabilities                             |   |                   | 448     |   |   |   | 474 |   |
| Net cash provided by operating activities                                        |   | $                      | 25,984  |   |   | $ | 2,747 |   |

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Table of Contents

HO

| 1. | Preparation of Interim Financial Statements |
|----|---------------------------------------------|

| 2. | Inventories |
|----|-------------|

|                                      |   | August 2, |   |   | February 1, |   |
|-------------------------------------------|--------|-----------|--------|--------|-------------|--------|
|                                      |   | 2009      |   |   | 2009        |   |
|    Finished furniture      |   | $         | 46,719 |   |        | $      | 64,865 |   |
|    Furniture in process    |   |      | 981    |   |        |   | 900 |   |
|    Materials and supplies  |   |      | 7,165  |   |        |   | 8,207 |   |
|    Inventories at FIFO     |   |      | 54,865 |   |        |   | 73,972 |   |
|    Reduction to LIFO basis |   |      | 13,347 |   |        |   | 13,724 |   |
|    Inventories             |   | $         | 41,518 |   |        | $      | 60,248 |   |

| 3. | Property, Plant and Equipment |
|----|-------------------------------|

|                                                 |   | August 2, |   |   | February 1, |   |
|------------------------------------------------------|--------|-----------|--------|--------|-------------|--------|
|                                                 |   | 2009      |   |   | 2009        |   |
|    Buildings and land improvements    |   | $         | 23,708 |   |        | $      | 23,676 |   |
|    Machinery and equipment            |   |      | 3,789  |   |        |   | 3,665 |   |
|    Furniture and fixtures             |   |      | 27,304 |   |        |   | 26,656 |   |
|    Other                              |   |      | 3,965  |   |        |   | 3,886 |   |
|    Total depreciable property at cost |   |      | 58,766 |   |        |   | 57,883 |   |
|    Less accumulated depreciation      |   |      | 36,911 |   |        |   | 35,695 |   |
|    Total depreciable property, net    |   |      | 21,855 |   |        |   | 22,188 |   |
|    Land                               |   |      | 1,357  |   |        |   | 1,357 |   |
|    Construction in progress           |   |      | 906    |   |        |   | 1,051 |   |
|    Property, plant and equipment, net |   | $         | 24,118 |   |        | $      | 24,596 |   |

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Table of Contents

| 4. | Intangible Assets |
|----|-------------------|

|                                                                    |   | August 2, |   |   | February 1, |   |
|-------------------------------------------------------------------------|--------|-----------|--------|--------|-------------|--------|
|                                                                    |   | 2009      |   |   | 2009        |   |
|    Non-amortizable Intangible Assets                     |   |      |   |   |        |   |
|    Trademarks and trade names – Bradington-Young   |   | $         | 2,676  |   |        | $      | 3,289 |   |
|    Trademarks and trade names – Sam Moore          |   |      | 396    |   |        |   | 396 |   |
|     Trademarks and trade names – Opus Designs |   |      | 1,057  |   |        |   | 1,057 |   |
|    Total trademarks and trade names                      |   |      | 4,129  |   |        |   | 4,742 |   |
|    Amortizable Intangible Assets                         |   |      |   |   |        |   |   |   |
|    Non-compete agreements                                |   |      |   |   |        |   | 700 |   |
|    Furniture designs                                     |   |      | 100    |   |        |   | 100 |   |
|    Total amortizable intangible assets                   |   |      | 100    |   |        |   | 800 |   |
|    Less accumulated amortization                         |   |      | 54     |   |        |   | 737 |   |
|    Net carrying value                                    |   |      | 46     |   |        |   | 63 |   |
|    Intangible assets                                     |   | $         | 4,175  |   |        | $      | 4,805 |   |

| 5.     | Accounts Receivable and Short-term Borrowing |
|----------------------------|----------------------------------------------|

|                                   |   | August 2, |   |   | August 3, |   |
|----------------------------------------|--------|-----------|--------|--------|-----------|--------|
|                                   |   | 2009      |   |   | 2008      |   |
|                                   |   |      |   |   |      |   |
| Trade accounts receivable              |   |      | 21,272 |   |      |   | 24,077 |   |
| Receivable from factor                 |   |      | 3,545  |   |      |   | 8,391 |   |
| Allowance for doubtful accounts        |   |      | (1,673 | )      |      |   | (2,207 | ) |
|    Accounts receivable  |   | $         | 23,144 |   |      | $      | 30,261 |   |
|                                   |   |      |   |   |      |   |   |   |
|                                   |   |      |   |   |      |   |   |   |
| Short-term borrowing                   |   | $         | 4,532  |   |      |   |   |   |
| Repayments                             |   |      | 1,882  |   |      |   |   |   |
|    Short-term borrowing |   | $         | 2,650  |   |      |   |   |   |

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Table of Contents

| 6. | Other Comprehensive Income |
|----|----------------------------|

|                                                                                                                              |   | Thirteen Weeks Ended |   |   | Twenty Six Weeks Ended |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|--------|------------------------|--------|
|                                                                                                                              |   | August 2,            |   |   | August 3,              |   |   | August 2, |   |   | August 3, |   |
|                                                                                                                              |   | 2009                 |   |   | 2008                   |   |   | 2009 |   |   | 2008 |   |
| Net (loss) income                                                                                                                 |   | $                    | (463   | )      |                   | $      | 2,074 |   |   | $ | (919 | ) |   | $ | 4,679 |   |
| Loss on interest rate swap                                                                                                        |   |                 | (7     | )      |                   |   | (3 | ) |   |   | (26 | ) |   |   | (1 | ) |
| Portion of swap agreement’s fair value reclassified to interest expense                                                     |   |                 | 56     |   |                   |   | 52 |   |   |   | 118 |   |   |   | 98 |   |
| Unrealized gain on interest rate swap                                                                                             |   |                 | 49     |   |                   |   | 49 |   |   |   | 92 |   |   |   | 97 |   |
| Portion of accumulated actuarial gain on Supplemental Retirement   Income Plan reclassified to deferred compensation expense |   |                 | (55    | )      |                   |   |   |   |   |   | (110 | ) |   |   |   |   |
| Other comprehensive (loss) income before tax                                                                                      |   |                 | (6     | )      |                   |   | 49 |   |   |   | (18 | ) |   |   | 97 |   |
| Income tax benefit (expense)                                                                                                      |   |                 | 2      |   |                   |   | (19 | ) |   |   | 7 |   |   |   | (37 | ) |
| Other comprehensive (loss) income, net of tax                                                                                     |   |                 | (4     | )      |                   |   | 30 |   |   |   | (11 | ) |   |   | 60 |   |
| Comprehensive (loss) income                                                                                                       |   | $                    | (467   | )      |                   | $      | 2,104 |   |   | $ | (930 | ) |   | $ | 4,739 |   |

| 7. | Accounting Pronouncements |
|----|---------------------------|

| 8.  | Supplier Commitments |
|----------|----------------------|

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Table of Contents

| 9. | Earnings Per Share |
|----|--------------------|

|                                                              |   | Thirteen Weeks Ended |   |   | Twenty-Six Weeks Ended |   |
|-------------------------------------------------------------------|--------|----------------------|--------|--------|------------------------|--------|
|                                                              |   | August 2,            |   |   | August 3,              |   |   | August 2, |   |   | August 3, |   |
|                                                              |   | 2009                 |   |   | 2008                   |   |   | 2009 |   |   | 2008 |   |
|                                                              |   |                 |   |   |                   |   |   |   |   |   |   |   |
| Net (loss) income                                                 |   | $                    | (463   | )      |                   | $      | 2,074 |   |   | $ | (919 | ) |   | $ | 4,679 |   |
| Less: Unvested participating restricted stock dividends           |   |                 | 2      |   |                   |   | 1 |   |   |   | 4 |   |   |   | 3 |   |
| Less: Net earnings allocated to unvested participating            |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| restricted stock                                                  |   |                 |   |   |                   |   | 3 |   |   |   |   |   |   |   | 6 |   |
| Earnings available for common shareholders                        |   | $                    | (465   | )      |                   | $      | 2,070 |   |   | $ | (923 | ) |   | $ | 4,670 |   |
|                                                              |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding for basic                     |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|    earnings per share                              |   |                 | 10,752 |   |                   |   | 11,234 |   |   |   | 10,752 |   |   |   | 11,383 |   |
| Dilutive effect of non-vested restricted stock awards             |   |                 |   |   |                   |   | 6 |   |   |   |   |   |   |   | 7 |   |
|    Weighted average shares outstanding for diluted |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|    earnings per share                              |   |                 | 10,752 |   |                   |   | 11,240 |   |   |   | 10,752 |   |   |   | 11,390 |   |
|                                                              |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings per share                                          |   | $                    | (0.04  | )      |                   | $      | 0.18 |   |   | $ | (0.09 | ) |   | $ | 0.41 |   |
|                                                              |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted earnings per share                                        |   | $                    | (0.04  | )      |                   | $      | 0.18 |   |   | $ | (0.09 | ) |   | $ | 0.41 |   |

| 10. | Share-Based Compensation |
|-----|--------------------------|

|                                  |   | Whole     |   |   | Grant-Date |   |   | Aggregate  |   |   | Compensation |   |   | Grant-Date Fair Value |   |
|---------------------------------------|--------|-----------|--------|--------|------------|--------|--------|------------|--------|--------|--------------|--------|--------|-----------------------|--------|
|                                  |   | Number of |   |   | Fair Value |   |   | Grant-Date |   |   | Expense      |   |   | Unrecognized At       |   |
|                                  |   | Shares    |   |   | Per Share  |   |   | Fair Value |   |   | Recognized   |   |   | August 2, 2009        |   |
| Shared Issued on January 16, 2006     |   |      |   |   |       |   |   |       |   |   |         |   |   |                  |   |
|    Issued              |   |      | 4,851  |   |       | $      | 15.31  |       |   | $      | 74           |   |   |                  |   |   |   |   |
|    Forfeited           |   |      | (784   | )      |       |   | 15.31  |       |   |   | (12          | )      |   |                  |   |   |   |   |
|    Vested              |   |      | (4,067 | )      |       |   | 15.31  |       |   |   | (62          | )      |   | $                     | 62     |   |   |   |   |
|                                  |   |      |   |   |       |   |   |       |   |   |         |   |   |                  |   |   |   |   |   |
| Shares Issued on January 15, 2007     |   |      |   |   |       |   |   |       |   |   |         |   |   |                  |   |   |   |   |   |
|    Issued              |   |      | 4,875  |   |       | $      | 15.23  |       |   |   | 74           |   |   |                  | 64     |   |   | $ | 10 |   |
| Shares Issued on January 15, 2008     |   |      |   |   |       |   |   |       |   |   |         |   |   |                  |   |   |   |   |   |   |
|    Issued              |   |      | 4,335  |   |       | $      | 19.61  |       |   |   | 85           |   |   |                  | 45     |   |   |   | 40 |   |
| Shares Issued on January 15, 2009     |   |      |   |   |       |   |   |       |   |   |         |   |   |                  |   |   |   |   |   |   |
|    Issued              |   |      | 10,474 |   |       | $      | 8.12   |       |   |   | 85           |   |   |                  | 16     |   |   |   | 69 |   |
|                                  |   |      |   |   |       |   |   |       |   |   |         |   |   |                  |   |   |   |   |   |   |
| Awards outstanding at August 2, 2009: |   |      | 19,684 |   |       |   |   |       |   | $      | 244          |   |   | $                     | 187    |   |   | $ | 119 |   |

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| 11. | Interest Rate Swaps (Derivative Financial Instruments) |
|-----|--------------------------------------------------------|

|               |   |     |   |   | Fixed    |   |            |   |              |   |
|--------------------|--------|----------|--------|--------|----------|--------|-----------------|--------|-------------------|--------|
|               |   | Notional |   |   | Interest |   |            |   |              |   |
| Agreement          |   | Amount   |   |   | Rate     |   | Expiration Date |   | Fair Value        |   |
| Interest rate swap |   | $        | 3,795  |   |     |   | 3.09            | %      | September 1, 2010 |   | $ | (76 | ) |

|                                             |   |                   |   |                            |   |   |             |   |         |   |
|--------------------------------------------------|--------|------------------------|--------|---------------------------------|--------|--------|------------------|--------|--------------|--------|
|                                             |   |                   |   |                            |   |   |             |   |         |   |
|                                             |   |                   |   | Fair Value as of August 2, 2009 |   |
|                                             |   | Carrying Value and     |   | Quoted Prices in                |   |   | Significant      |   |         |   |
|                                             |   | Balance Sheet Location |   | Active Markets                  |   |   | Other            |   | Significant  |   |
|                                             |   | As of August 2, 2009   |   | for Identical                   |   |   |  Observable |   | Unobservable |   |
|                                             |   | Other Accrued          |   | Instruments                     |   |   |  Inputs     |   | Inputs       |   |
|                                             |   | Expenses               |   | (Level 1)                       |   |   | (Level 2)        |   | (Level 3)    |   |
| Swap designated as cash flow hedging instrument: |   |                   |   |                            |   |   |             |   |         |   |
| Interest rate swap                               |   | $                      | (76    | )                          |   |   | $                | (76    | )            |   |   |   |

|                                                          |   | Thirteen Weeks Ended |   |   | Twenty-Six Weeks Ended |   |
|---------------------------------------------------------------|--------|----------------------|--------|--------|------------------------|--------|
|                                                          |   | August 2,            |   |   | August 3,              |   |   | August 2, |   |   | August 3, |   |
|                                                          |   | 2009                 |   |   | 2008                   |   |   | 2009 |   |   | 2008 |   |
| Swap designated as cash flow hedging instrument:              |   |                 |   |   |                   |   |   |   |   |   |   |   |
| (Loss) gain recognized in other comprehensive income     |   | $                    | (7     | )      |                   | $      | (3 | ) |   | $ | (26 | ) |   | $ | (1 | ) |
| (Loss) reclassified from AOCI into interest expense, net |   |                 | 56     |   |                   |   | 52 |   |   |   | 118 |   |   |   | 98 |   |

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| 12.  | Subsequent Events |
|-----------|-------------------|

| ·   | upon execution of the amendment, we were required to repay in full the remaining balance of the term loans outstanding under the agreement ($3.8 million, plus accrued interest); |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | effective as of July 30, 2009, the Funded Debt to EBITDA Ratio under the credit agreement has been changed from 1.25:1.0 to 2.0:1.0; and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | effective as of July 30, 2009, the Debt Service Coverage Ratio under the credit agreement has been eliminated. |
|--------------------|----------------------------------------------------------------------------------------------------------------|

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| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
|---------|---------------------------------------------------------------------------------------------|

| ·   | the 2010 fiscal year or comparable terminology refer to the fiscal year that began February 2, 2009 and will end January 31, 2010; and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the 2009 fiscal year or comparable terminology refers to the fiscal year that began February 4, 2008 and ended February 1, 2009. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------|

| ·   | Net sales declined by $18.7 million, or 28.9%, to $46.0 million during the fiscal year 2010 second quarter compared to net sales of $64.6 million during the fiscal year 2009 second quarter.  For the first half of fiscal year 2010 sales declined $37.6 million, or 27.7% to $98.0 million, compared to $135.7 million in first half of fiscal year 2009.  Thisdecline reflects the continuing year-over-year declines in incoming order rates we have experienced in all operating units since the fiscal 2006 third quarter, resulting from the industry-wide slow down in business at retail. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Gross margins in our upholstery units declined due to higher fixed costs as a percent of net sales. |
|--------------------|-----------------------------------------------------------------------------------------------------|

| ·   | Selling and administrative expenses decreased in absolute terms compared to the fiscal year 2009 periods, but increased as a percent of net sales due to the effect of the fixed nature of certain selling and administrative costs on the lower net sales reported in fiscal year 2010. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Operating loss for the fiscal year 2010 second quarter was $499,000 or 1.1% of net sales, compared to operating income of $3.1 million, or 4.8% of net sales, in the fiscal year 2009 second quarter principally due to lower net sales and  higher fixed operating and domestic upholstery overhead costs as a percent of net sales. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | For the first half of fiscal year 2010, the operating loss was $1.1 million, or 1.2% of net sales, compared to operating income of $7.1 million, or 5.2% of net sales, in the first half of fiscal year 2009 principally due to lower net sales, higher fixed operating and domestic upholstery overhead costs as a percent of net sales and an impairment chargeof $613,000 related to the Bradington-Young trade name. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                               |   | Thirteen Weeks Ended |   |   | Twenty-Six Weeks Ended |   |
|----------------------------------------------------|--------|----------------------|--------|--------|------------------------|--------|
|                                               |   | August 2,            |   |   | August 3,              |   |   | August 2, |   |   | August 3, |   |
|                                               |   | 2009                 |   |   | 2008                   |   |   | 2009 |   |   | 2008 |   |
| Net sales                                          |   |                 | 100.0  | %      |                   |   | 100.0 | % |   |   | 100.0 | % |   |   | 100.0 | % |
| Cost of sales                                      |   |                 | 78.9   |   |                   |   | 78.1 |   |   |   | 78.7 |   |   |   | 77.3 |   |
| Gross profit                                       |   |                 | 21.1   |   |                   |   | 21.9 |   |   |   | 21.3 |   |   |   | 22.7 |   |
| Selling and administrative expenses                |   |                 | 22.3   |   |                   |   | 17.5 |   |   |   | 21.9 |   |   |   | 17.7 |   |
| Restructuring and asset impairment (credit) charge |   |                 | (0.1   | )      |                   |   | (0.4 | ) |   |   | 0.6 |   |   |   | (0.2 | ) |
| Operating (loss) income                            |   |                 | (1.1   | )      |                   |   | 4.8 |   |   |   | (1.2 | ) |   |   | 5.2 |   |
| Other (expense) income, net                        |   |                 |   |   |                   |   | 0.3 |   |   |   |   |   |   |   | 0.3 |   |
| (Loss) income before income taxes                  |   |                 | (1.1   | )      |                   |   | 5.1 |   |   |   | (1.2 | ) |   |   | 5.5 |   |
| Income tax (benefit) expense                       |   |                 | (0.1   | )      |                   |   | 1.9 |   |   |   | (0.2 | ) |   |   | 2.0 |   |
| Net (loss) income                                  |   |                 | (1.0   | )      |                   |   | 3.2 |   |   |   | (1.0 | ) |   |   | 3.5 |   |
|                                     |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |

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| ·   | deferring, reducing or eliminating certain spending plans; |
|--------------------|------------------------------------------------------------|

| ·   | continuing to refine the management of our supply chain, warehousing and distribution operations; and |
|--------------------|-------------------------------------------------------------------------------------------------------|

| ·   | adjusting our inventory levels to reflect current business conditions and lower sales volumes. |
|--------------------|------------------------------------------------------------------------------------------------|

| ·   | pursuing additional distribution channels and offering an array of new products and designs that we believe will generate additional sales growth; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | taking actions to streamline our domestic  upholstery operations, improve efficiency and reduce overhead; and, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------|

| ·   | continuing to evaluate our manufacturing capacity utilization, work schedules and operating costs to better match costs to current sales volume levels. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | Shortly after the close of the second quarter we amended our credit agreement with Bank of America and repaid the outstanding term debt under our credit facility.  As a result, we reclassified the remaining long term portion ($787,000) of our term debt as current as of August 2, 2009.  For additional information regarding the amendmentof the credit agreement, see “Amendment of Credit Agreement and Repayment of Term Loan” below. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We factor substantially all of our upholstery accounts receivable.  Typically, the factor provided us with credit and collections services.  Under our factoring agreement, we were entitled to borrow against invoices submitted to the factor for collection.  Prior to July 15, 2009, the factor took ownership of invoices whenwe submitted the invoices to them, without recourse, ensuring our cash flow on approved invoices.  In the event of bankruptcy or other liquidity shortfalls by the factor, our ability to collect funds from the factor could have been impaired.  In response to that risk that the factor would be forced to seek bankruptcy protection, on July 21, 2009 we borrowed $4.5 million, the maximum amount available under our factoring arrangement.  The factor continued to collect accounts receivableand applied the collections to the outstanding advance balance, leaving a loan balance of $2.7 million as of August 2, 2009.  We believe that borrowing these funds was a prudent approach to minimize the risk of loss or reduced liquidity in the event of a bankruptcy filing by the factor, which appeared to be a significant risk at that time.  Subsequent to the end of the quarter, the factor announced that its efforts to refinance through a tender offer of secured notes were successful, thusreducing the imminent threat of bankruptcy.  We expect the factor to collect the remaining $2.7 million before the end of our 2010 third quarter; and we expect to repay the funds borrowed from the factor once those accounts receivable are collected.  On July 16, 2009 we modified our agreement with the factor to reduce future exposure by retaining ownership of our accounts receivable submitted to the factor for collection. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | upon execution of the amendment, we were required to repay in full the remaining balance of the term loans outstanding under the agreement ($3.8 million, plus accrued interest); |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | effective as of July 30, 2009, the Funded Debt to EBITDA Ratio under the credit agreement has been changed from 1.25:1.0 to 2.0:1.0; and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | effective as of July 30, 2009, the Debt Service Coverage Ratio under the credit agreement has been eliminated. |
|--------------------|----------------------------------------------------------------------------------------------------------------|

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| ·   | current economic conditions and instability in the financial and credit markets including their potential impact on our (i) sales and operating costs and access to financing, (ii) customers and suppliers and their ability to obtain financing or generate the cash necessary to conduct their business; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | general economic or business conditions, both domestically and internationally; |
|--------------------|---------------------------------------------------------------------------------|

| ·   | price competition in the furniture industry; |
|--------------------|----------------------------------------------|

| ·   | changes in domestic and international monetary policies and fluctuations in foreign currency exchange rates affecting the price of our imported products and raw materials; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the cyclical nature of the furniture industry, which is particularly sensitive to changes in consumer confidence, the amount of consumers’ income available for discretionary purchases, and the availability and terms of consumer credit; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | risks associated with the cost of imported goods, including fluctuations in the prices of purchased finished goods and transportation and warehousing costs; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | supply, transportation and distribution disruptions, particularly those affecting imported products; |
|--------------------|------------------------------------------------------------------------------------------------------|

| ·   | adverse political acts or developments in, or affecting, the international markets from which we import products, including duties or tariffs imposed on those products; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | risks associated with domestic manufacturing operations, including fluctuations in capacity utilization and the prices of key raw materials, transportation and warehousing costs, domestic labor costs and environmental compliance and remediation costs; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our ability to successfully implement our business plan to increase sales and improve financial performance; |
|--------------------|--------------------------------------------------------------------------------------------------------------|

| ·   | achieving and managing growth and change, and the risks associated with acquisitions, restructurings, strategic alliances and international operations; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | risks associated with distribution through retailers, such as non-binding dealership arrangements; |
|--------------------|----------------------------------------------------------------------------------------------------|

| ·   | capital requirements and costs; |
|--------------------|---------------------------------|

| ·   | competition from non-traditional outlets, such as catalog and internet retailers and home improvement centers; |
|--------------------|----------------------------------------------------------------------------------------------------------------|

| ·   | changes in consumer preferences, including increased demand for lower quality, lower priced furniture due to declines in consumer confidence and/or discretionary income available for furniture purchases and the availability of consumer credit; and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | higher than expected costs associated with product quality and safety, including regulatory compliance costs related to the sale of consumer products and costs related to defective products. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Item 3. | Quantitative and Qualitative Disclosures about Market Risk |
|---------|------------------------------------------------------------|

| Item 4.  | Controls and Procedures |
|---------------|-------------------------|

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

| Director                   |   | For       |   | Withheld  |
|----------------------------|--------|-----------|--------|-----------|
| W. Christopher Beeler, Jr. |   | 9,086,103 |   | 130,723   |
| John L. Gregory, III       |   | 9,188,969 |   | 27,857    |
| Mark F. Schreiber          |   | 9,128,737 |   | 88,089    |
| David G. Sweet             |   | 9,124,179 |   | 92,647    |
| Paul B. Toms, Jr.          |   | 9,187,161 |   | 29,665    |
| Henry G. Williamson, Jr.   |   | 7,435,829 |   | 1,780,997 |

| Item 5. | Other Information |
|---------|-------------------|

| Item 6. | Exhibits |
|---------|----------|

|   | 3.1    | Amended and Restated Articles of Incorporation of the Company, as amended March 28, 2003 (incorporated by reference to Exhibit 3.1 of the Company’s Form 10-Q (SEC File No. 000-25349) for the quarter ended February 28, 2003)                     |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                      |
|   | 3.2    | Amended and Restated Bylaws of the Company (incorporated by reference to Exhibit 3.2 to the Company’s Form 10-Q (SEC File No. 000-25349) for the quarter ended August 31, 2006)                                                                     |
|   |   |                                                                                                                                                                                                                                                      |
|   | 4.1    | Amended and Restated Articles of Incorporation of the Company (See Exhibit 3.1)                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                      |
|   | 4.2    | Amended and Restated Bylaws of the Company (See Exhibit 3.2)                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                      |
|   | 10.1   | Fourth Amendment to Credit Agreement, dated as of August 10, 2009, between the Company and Bank of America N.A. (incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K (SEC File No. 000-25349) filed with the SEC on August 13, 2009 |
|   |   |                                                                                                                                                                                                                                                      |
|   | 31.1*  | Rule 13a-14(a) Certification of the Company’s principal executive officer                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                      |
|   | 31.2*  | Rule 13a-14(a) Certification of the Company’s principal financial officer                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                      |
|   | 32.1*  | Rule 13a-14(b) Certification of the Company’s principal executive officer and principal financial officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                   |

|   | ____________ |
|--------|--------------|

|   | *Filed herewith |
|--------|-----------------|

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SIGNATURE

|                     | HOOKER FURNITURE CORPORATION |                                                                                                                                             |
|--------------------------|------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|
|                     |                         |                                                                                                                                             |   |
| Date: September 10, 2009 | By:                          | /s/ E. Larry Ryder                      |   |
|                     |                         | E. Larry Ryder                                                                                                                                   |   |
|                     |                         | Executive Vice President – Finance andAdministration and Chief Financial Officer                                                           |   |
|                     |                         |                                                                                                                                             |   |

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|   | Exhibit No. | Description                                                                                                                                                                                                                                               |
|--------|-------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 3.1         | Amended and Restated Articles of Incorporation of the Company, as amended March 28, 2003 (incorporated by reference to Exhibit 3.1 of the Company’s Form 10-Q (SEC File No. 000-25349) for the quarter ended February 28, 2003)                     |
|   |        |                                                                                                                                                                                                                                                      |
|   | 3.2         | Amended and Restated Bylaws of the Company (incorporated by reference to Exhibit 3.2 to the Company’s Form 10-Q (SEC File No. 000-25349) for the quarter ended August 31, 2006)                                                                     |
|   |        |                                                                                                                                                                                                                                                      |
|   | 4.1         | Amended and Restated Articles of Incorporation of the Company (See Exhibit 3.1)                                                                                                                                                                           |
|   |        |                                                                                                                                                                                                                                                      |
|   | 4.2         | Amended and Restated Bylaws of the Company (See Exhibit 3.2)                                                                                                                                                                                              |
|   |        |                                                                                                                                                                                                                                                      |
|   | 10.1        | Fourth Amendment to Credit Agreement, dated as of August 10, 2009, between the Company and Bank of America N.A. (incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K (SEC File No. 000-25349) filed with the SEC on August 13, 2009 |
|   |        |                                                                                                                                                                                                                                                      |
|   | 31.1*       | Rule 13a-14(a) Certification of the Company’s principal executive officer                                                                                                                                                                           |
|   |        |                                                                                                                                                                                                                                                      |
|   | 31.2*       | Rule 13a-14(a) Certification of the Company’s principal financial officer                                                                                                                                                                           |
|   |        |                                                                                                                                                                                                                                                      |
|   | 32.1*       | Rule 13a-14(b) Certification of the Company’s principal executive officer and principal financial officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                   |

|   | ____________ |
|--------|--------------|

|   | *Filed herewith |
|--------|-----------------|

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