**Form      10-Q**

**ended      August 3, 2008**

**000-25349**

**HOOKER      FURNITURE CORPORATION**

*(Exact      name of registrant as specified in its charter)*

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

**440      East Commonwealth Boulevard**
**,**
**      Martinsville, VA 24112**

*(Address      of principal executive offices, zip code)*

**(276)      632-0459**

*(Registrant’s      telephone number, including area code)*

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

** **
**September      4, 2008**

| **Common                stock, no par value** |   | **10,761,338**                      |
|-----------------------------------------------|--------|-------------------------------------|
| *(Class                of common stock)*      |   | *(Number                of shares)* |

----

**PART      I. FINANCIAL INFORMATION**

**Item      1. Financial Statements**

**HOOKER      FURNITURE CORPORATION AND SUBSIDIARIES**

|                                                                                                                                                                                           |   | **August 3,** |        | February 3, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|-------------|------------------|--------|
|                                                                                                                                                                                           |   | **2008**           |        | 2008             |   |
| **Assets**                                                                                                                                                                                     |   |               |        |             |   |   |   |
| Current                assets                                                                                                                                                                  |   |               |        |             |   |   |   |
| Cash                and cash equivalents                                                                                                                                                       |   | **$**              | **15,799**  |             | $      | 33,076 |   |
| Trade                accounts receivable, less allowance for doubtful accounts of **$1,431**                and $1,750 on each date                                                            |   |               | **33,535**  |             |   | 38,229 |   |
| Inventories                                                                                                                                                                                    |   |               | **57,820**  |             |   | 50,560 |   |
| Prepaid                expenses and other current assets                                                                                                                                       |   |               | **3,813**   |             |   | 3,552 |   |
| Total                current assets                                                                                                                                                            |   |               | **110,967** |             |   | 125,417 |   |
| Property,                plant and equipment, net                                                                                                                                              |   |               | **25,224**  |             |   | 25,353 |   |
| Goodwill                                                                                                                                                                                       |   |               | **3,803**   |             |   | 3,774 |   |
| Intangible                assets                                                                                                                                                               |   |               | **5,925**   |             |   | 5,892 |   |
| Cash                surrender value of life insurance policies                                                                                                                                 |   |               | **13,059**  |             |   | 12,173 |   |
| Other                assets                                                                                                                                                                    |   |               | **2,236**   |             |   | 2,623 |   |
| Total                assets                                                                                                                                                                    |   | **$**              | **161,214** |             | $      | 175,232 |   |
|                                                                                                                                                                                           |   |               |        |             |   |   |   |
| **Liabilities                and Shareholders’ Equity**                                                                                                                                  |   |               |        |             |   |   |   |
| Current                liabilities                                                                                                                                                             |   |               |        |             |   |   |   |
| Trade                accounts payable                                                                                                                                                          |   | **$**              | **13,370**  |             | $      | 13,025 |   |
| Accrued                salaries, wages and benefits                                                                                                                                            |   |               | **3,019**   |             |   | 3,838 |   |
| Other                accrued expenses                                                                                                                                                          |   |               | **2,463**   |             |   | 3,553 |   |
| Current                maturities of long-term debt                                                                                                                                            |   |               | **2,795**   |             |   | 2,694 |   |
| Total                current liabilities                                                                                                                                                       |   |               | **21,647**  |             |   | 23,110 |   |
| Long-term                debt, excluding current maturities                                                                                                                                    |   |               | **3,795**   |             |   | 5,218 |   |
| Deferred                compensation                                                                                                                                                           |   |               | **5,984**   |             |   | 5,369 |   |
| Other                long-term liabilities                                                                                                                                                     |   |               | **568**     |             |   | 709 |   |
| Total                liabilities                                                                                                                                                               |   |               | **31,994**  |             |   | 34,406 |   |
|                                                                                                                                                                                           |   |               |        |             |   |   |   |
| Shareholders’                equity                                                                                                                                                      |   |               |        |             |   |   |   |
| Common                stock, no par value, **20,000**                shares authorized, **10,763**and                11,561** **shares                issued and outstanding on each date |   |               | **16,959**  |             |   | 18,182 |   |
| Retained                earnings                                                                                                                                                               |   |               | **112,392** |             |   | 122,835 |   |
| Accumulated                other comprehensive loss                                                                                                                                            |   |               | **(131**    | **)**            |   | (191 | ) |
| Total                shareholders’ equity                                                                                                                                                |   |               | **129,220** |             |   | 140,826 |   |
| Total                liabilities and shareholders’ equity                                                                                                                                |   | **$**              | **161,214** |             | $      | 175,232 |   |

----

**HOOKER      FURNITURE CORPORATION AND SUBSIDIARIES**

|                                                              |   | Thirteen Weeks Ended |       | Twenty-Six Weeks Ended |   |
|-------------------------------------------------------------------|--------|--------------------------------|------------|----------------------------------|--------|
|                                                              |   | **August 3,**             |       | July 29,                    |   | **August 3,** |   | July 29, |   |
|                                                              |   | **2008**                       |       | 2007                             |   | **2008** |   | 2007 |   |
|                                                              |   |                           |       |                             |   |   |   |   |   |
| Net                sales                                          |   | **$**                          | **64,628** |                             | $      | 73,441 |   | **$** | **135,655** |   | $ | 150,735 |   |
|                                                              |   |                           |       |                             |   |   |   |   |   |   |   |   |   |
| Cost                of sales                                      |   |                           | **46,328** |                             |   | 50,440 |   |   | **96,063** |   |   | 105,656 |   |
|                                                              |   |                           |       |                             |   |   |   |   |   |   |   |   |   |
| Gross                profit                                       |   |                           | **18,300** |                             |   | 23,001 |   |   | **39,592** |   |   | 45,079 |   |
|                                                              |   |                           |       |                             |   |   |   |   |   |   |   |   |   |
| Selling                and administrative expenses                |   |                           | **15,437** |                             |   | 15,072 |   |   | **32,779** |   |   | 31,073 |   |
|                                                              |   |                           |       |                             |   |   |   |   |   |   |   |   |   |
| Restructuring                and asset impairment (credit) charge |   |                           | **(258**   | **)**                            |   | 473 |   |   | **(258** | **)** |   | 344 |   |
|                                                              |   |                           |       |                             |   |   |   |   |   |   |   |   |   |
| Operating                income                                   |   |                           | **3,121**  |                             |   | 7,456 |   |   | **7,071** |   |   | 13,662 |   |
|                                                              |   |                           |       |                             |   |   |   |   |   |   |   |   |   |
| Other                income, net                                  |   |                           | **168**    |                             |   | 308 |   |   | **355** |   |   | 841 |   |
|                                                              |   |                           |       |                             |   |   |   |   |   |   |   |   |   |
| Income                before income taxes                         |   |                           | **3,289**  |                             |   | 7,764 |   |   | **7,426** |   |   | 14,503 |   |
|                                                              |   |                           |       |                             |   |   |   |   |   |   |   |   |   |
| Income                taxes                                       |   |                           | **1,215**  |                             |   | 2,906 |   |   | **2,747** |   |   | 5,359 |   |
|                                                              |   |                           |       |                             |   |   |   |   |   |   |   |   |   |
| Net                income                                         |   | **$**                          | **2,074**  |                             | $      | 4,858 |   | **$** | **4,679** |   | $ | 9,144 |   |
|                                                              |   |                           |       |                             |   |   |   |   |   |   |   |   |   |
| Earnings                per share:                                |   |                           |       |                             |   |   |   |   |   |   |   |   |   |
| Basic                                                             |   | **$**                          | **0.18**   |                             | $      | 0.39 |   | **$** | **0.41** |   | $ | 0.71 |   |
| Diluted                                                           |   | **$**                          | **0.18**   |                             | $      | 0.39 |   | **$** | **0.41** |   | $ | 0.71 |   |
|                                                              |   |                           |       |                             |   |   |   |   |   |   |   |   |   |
| Weighted                average shares outstanding:               |   |                           |       |                             |   |   |   |   |   |   |   |   |   |
| Basic                                                             |   |                           | **11,234** |                             |   | 12,590 |   |   | **11,383** |   |   | 12,881 |   |
| Diluted                                                           |   |                           | **11,240** |                             |   | 12,594 |   |   | **11,390** |   |   | 12,884 |   |
|                                                              |   |                           |       |                             |   |   |   |   |   |   |   |   |   |
| Cash                dividends declared per share                  |   | **$**                          | **0.10**   |                             | $      | 0.10 |   | **$** | **0.20** |   | $ | 0.20 |   |

----

**HOOKER      FURNITURE CORPORATION AND SUBSIDIARIES**

|                                                                                                             |   | Twenty-Six                  Weeks Ended |         |
|------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|--------------|
|                                                                                                             |   | **August                  3,**          |         | July                  29, |   |
|                                                                                                             |   | **2008**                                |         | 2007 |   |
| **Cash                  flows from operating activities**                                                        |   |                                    |         |   |   |   |   |
| Cash                  received from customers.                                                                   |   | **$**                                   | **140,545**  |   | $ | 157,243 |   |
| Cash                  paid to suppliers and employees                                                            |   |                                    | **(134,501** | **)** |   | (125,817 | ) |
| Income                  taxes paid, net                                                                          |   |                                    | **(4,428**   | **)** |   | (8,353 | ) |
| Interest                  received, net                                                                          |   |                                    | **286**      |   |   | 759 |   |
| Net                  cash provided by operating activities                                                       |   |                                    | **1,902**    |   |   | 23,832 |   |
|                                                                                                             |   |                                    |         |   |   |   |   |
| **Cash                  flows from investing activities**                                                        |   |                                    |         |   |   |   |   |
| Acquisition                  of Sam Moore, net of cash acquired                                                  |   |                                    |         |   |   | (10,566 | ) |
| Additional                  payments related to the acquisition of Opus Designs                                  |   |                                    | **(181**     | **)** |   |   |   |
| Purchase                  of property, plant and equipment                                                       |   |                                    | **(1,303**   | **)** |   | (1,050 | ) |
| Proceeds                  from the sale of property and equipment                                                |   |                                    | **7**        |   |   | 59 |   |
| Net                  cash used in investing activities                                                           |   |                                    | **(1,477**   | **)** |   | (11,557 | ) |
|                                                                                                             |   |                                    |         |   |   |   |   |
| **Cash                  flows from financing activities**                                                        |   |                                    |         |   |   |   |   |
| Purchases                  and retirement of common stock                                                        |   |                                    | **(14,073**  | **)** |   | (18,374 | ) |
| Cash                  dividends paid                                                                             |   |                                    | **(2,307**   | **)** |   | (2,606 | ) |
| Payments                  on long-term debt                                                                      |   |                                    | **(1,322**   | **)** |   | (1,230 | ) |
| Net                  cash used in financing activities                                                           |   |                                    | **(17,702**  | **)** |   | (22,210 | ) |
|                                                                                                             |   |                                    |         |   |   |   |   |
| **Net                  decrease in cash and cash equivalents**                                                   |   |                                    | **(17,277**  | **)** |   | (9,935 | ) |
| **Cash                  and cash equivalents at beginning of period**                                            |   |                                    | **33,076**   |   |   | 47,085 |   |
| **Cash                  and cash equivalents at end of period**                                                  |   | **$**                                   | **15,799**   |   | $ | 37,150 |   |
|                                                                                                             |   |                                    |         |   |   |   |   |
| **Reconciliation                  of net income to net cash provided by operating                  activities:** |   |                                    |         |   |   |   |   |
| Net                  income                                                                                      |   | **$**                                   | **4,679**    |   | $ | 9,144 |   |
| Depreciation                  and amortization                                                                   |   |                                    | **1,328**    |   |   | 1,702 |   |
| Non-cash                  restricted stock awards                                                                |   |                                    | **36**       |   |   | 22 |   |
| Restructuring                  (credit) charge                                                                   |   |                                    | **(258**     | **)** |   | 344 |   |
| Loss                  on disposal of property                                                                    |   |                                    | **123**      |   |   | 9 |   |
| Provision                  for doubtful accounts                                                                 |   |                                    | **588**      |   |   | 460 |   |
| Deferred                  income tax expense                                                                     |   |                                    | **258**      |   |   | 1,739 |   |
| Changes                  in assets and liabilities, net of effect from                  acquisitions:            |   |                                    |         |   |   |   |   |
| Trade                  accounts receivable                                                                       |   |                                    | **4,150**    |   |   | 6,182 |   |
| Inventories                                                                                                      |   |                                    | **(7,201**   | **)** |   | 10,945 |   |
| Prepaid                  expenses and other assets                                                               |   |                                    | **(1,064**   | **)** |   | (780 | ) |
| Trade                  accounts payable                                                                          |   |                                    | **345**      |   |   | 1,219 |   |
| Accrued                  salaries, wages and benefits                                                            |   |                                    | **(560**     | **)** |   | (2,322 | ) |
| Accrued                  income taxes                                                                            |   |                                    | **(1,274**   | **)** |   | (4,732 | ) |
| Other                  accrued expenses                                                                          |   |                                    | **278**      |   |   | (601 | ) |
| Other                  long-term liabilities                                                                     |   |                                    | **474**      |   |   | 501 |   |
| Net                  cash provided by operating activities                                                       |   | **$**                                   | **1,902**    |   | $ | 23,832 |   |

----

**HOOKER      FURNITURE CORPORATION AND SUBSIDIARIES**

----

----

|                                                        |   |              |       |           |   |          |   | Accumulated         |        |   |   |
|-------------------------------------------------------------|--------|-------------------|------------|----------------|--------|---------------|--------|---------------------|-------------|--------|--------|
|                                                        |   |              |       |           |   |          |   | Other               |        | Total  |   |
|                                                        |   | Common Stock |       | Retained  |   | Comprehensive |   | Shareholders’ |        |
|                                                        |   | Shares            |       | Amount         |   | Earnings      |   | Loss                |        | Equity |   |
|                                                        |   |              |       |           |   |          |   |                |        |   |   |
| Balance at February 3, 2008             |   |              | 11,561     |           | $      | 18,182        |   | $                   | 122,835     |   | $      | (191 | ) | $ | 140,826 |   |
|                                                        |   |              |       |           |   |          |   |                |        |   |   |   |   |   |   |   |
| Net                income                                   |   |              |       |           |   |          |   |                | **4,679**   |   |   |   |   |   | **4,679** |   |
| Unrealized                gain on interest rate swap        |   |              |       |           |   |          |   |                |        |   |   | **60** |   |   | **60** |   |
| Total                comprehensive income                   |   |              |       |           |   |          |   |                |        |   |   |   |   |   | **4,739** |   |
| Cash                dividends ($0.20 per share)             |   |              |       |           |   |          |   |                | **(2,307**  | **)**  |   |   |   |   | **(2,307** | **)** |
| Restricted                stock compensation cost           |   |              |       |           |   | **36**        |   |                |        |   |   |   |   |   | **36** |   |
| Repurchases                of common stock                  |   |              | **(798**   | **)**          |   | **(1,259**    | **)**  |                | **(12,815** | **)**  |   |    |   |   | **(14,074** | **)** |
| Balance                at **August                3, 2008** |   |              | **10,763** |           | **$**  | **16,959**    |   | **$**               | **112,392** |   | **$**  | **(131** | **)** | **$** | **129,220** |   |

----

**HOOKER      FURNITURE CORPORATION AND SUBSIDIARIES**

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

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

|                                   |   | **August                3,** |       | February                3, |   |
|----------------------------------------|--------|------------------------------|------------|----------------------------|--------|
|                                   |   | **2008**                     |       | 2008                       |   |
| Finished                furniture      |   | **$**                        | **60,365** |                       | $      | 52,602 |   |
| Furniture                in process    |   |                         | **1,317**  |                       |   | 1,217 |   |
| Materials                and supplies  |   |                         | **9,375**  |                       |   | 7,814 |   |
| Inventories                at FIFO     |   |                         | **71,057** |                       |   | 61,633 |   |
| Reduction                to LIFO basis |   |                         | **13,237** |                       |   | 11,073 |   |
| Inventories                            |   | **$**                        | **57,820** |                       | $      | 50,560 |   |

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

|                                                |   | **August                  3,** |       | February                  3, |   |
|-----------------------------------------------------|--------|--------------------------------|------------|------------------------------|--------|
|                                                |   | **2008**                       |       | 2008                         |   |
| Buildings                  and land improvements    |   | **$**                          | **23,473** |                         | $      | 23,076 |   |
| Machinery                  and equipment            |   |                           | **3,596**  |                         |   | 3,425 |   |
| Furniture                  and fixtures             |   |                           | **26,498** |                         |   | 27,516 |   |
| Other                                               |   |                           | **3,985**  |                         |   | 3,740 |   |
| Total                  depreciable property at cost |   |                           | **57,552** |                         |   | 57,757 |   |
| Less                  accumulated depreciation      |   |                           | **34,133** |                         |   | 34,558 |   |
| Total                  depreciable property, net    |   |                           | **23,419** |                         |   | 23,199 |   |
| Land                                                |   |                           | **1,387**  |                         |   | 1,387 |   |
| Construction                  in progress           |   |                           | **418**    |                         |   | 767 |   |
| Property,                  plant and equipment, net |   | **$**                          | **25,224** |                         | $      | 25,353 |   |

----

| 4. | **Goodwill                and Intangible Assets** |
|----|---------------------------------------------------|

|                                                                              |   | **August                3,** |      | February                3, |   |
|-----------------------------------------------------------------------------------|--------|------------------------------|-----------|----------------------------|--------|
|                                                                              |   | **2008**                     |      | 2008                       |   |
| Goodwill                                                                          |   | **$**                        | **3,803** |                       | $      | 3,774 |   |
|                                                                              |   |                         |      |                       |   |   |   |
| **Non-amortizable                Intangible Assets**                              |   |                         |      |                       |   |   |   |
| Trademarks                and trade names –                Bradington-Young |   | **$**                        | **4,400** |                       | $      | 4,400 |   |
| Trademarks                and trade names – Sam Moore                       |   |                         | **396**   |                       |   | 396 |   |
| Trademarks                and trade names – Opus Designs                    |   |                         | **1,050** |                       |   | 1,000 |   |
| Total                trademarks and trade names                                   |   |                         | **5,846** |                       |   | 5,796 |   |
| **Amortizable                Intangible Assets**                                  |   |                         |      |                       |   |   |   |
| Non-compete                agreements                                             |   |                         | **700**   |                       |   | 700 |   |
| Furniture                designs                                                  |   |                         | **100**   |                       |   | 100 |   |
| Total                amortizable intangible assets                                |   |                         | **800**   |                       |   | 800 |   |
| Less                accumulated amortization                                      |   |                         | **721**   |                       |   | 704 |   |
| Net                carrying value                                                 |   |                         | **79**    |                       |   | 96 |   |
| Intangible                assets                                                  |   | **$**                        | **5,925** |                       | $      | 5,892 |   |

| 5. | **Acquisitions** |
|----|------------------|

|                                          |   | December 14, |   |
|-----------------------------------------------|--------|-------------------|--------|
|                                          |   | 2007              |   |
| Current                assets                 |   | $                 | 2,876  |   |
| Goodwill                and intangible assets |   |              | 2,557  |   |
| Total                assets acquired          |   | $                 | 5,433  |   |

| 6. | **Long-Term                Debt** |
|----|-----------------------------------|

|                                                   |   | **August 3,** |      | February 3, |   |
|--------------------------------------------------------|--------|--------------------|-----------|------------------|--------|
|                                                   |   | **2008**           |      | 2008             |   |
| Term                loan                               |   | **$**              | **6,590** |             | $      | 7,912 |   |
| Less                current maturities                 |   |               | **2,795** |             |   | 2,694 |   |
| Long-term                debt, less current maturities |   | **$**              | **3,795** |             | $      | 5,218 |   |

| 7. | **Restructuring** |
|----|-------------------|

|                                                        |   | Severance and          |     |   |   |    |   |
|-------------------------------------------------------------|--------|-----------------------------|----------|--------|--------|---------|--------|
|                                                        |   | Related Benefits  |     | Other  |   | Total   |   |
| Accrued                balance at February 3, 2008          |   | $                           | 829      |   | $      | 193     |   | $ | 1,022 |   |
| Restructuring                credit ** **              |   |                        | **(258** | **)**  |   |    |   |   | **(258** | **)** |
| Cash                payments                                |   |                        | **8**    |   |   | **(17** | **)**  |   | **(9** | **)** |
| Balance                at **August                3, 2008** |   | **$**                       | **579**  |   | **$**  | **176** |   | **$** | **755** |   |

----

| **8.** | **Other                Comprehensive Income** |
|--------|-----------------------------------------------|

|                                                                                                        |   | Thirteen                Weeks Ended |      | Twenty-Six                Weeks Ended |   |
|-------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|-----------|---------------------------------------|--------|
|                                                                                                        |   | **August                3,**        |      | July                29,               |   | **August                3,** |   | July                29, |   |
|                                                                                                        |   | **2008**                            |      | 2007                                  |   | **2008** |   | 2007 |   |
| Net                income                                                                                   |   | **$**                               | **2,074** |                                  | $      | 4,858 |   | **$** | **4,679** |   | $ | 9,144 |   |
| (Loss)                gain on interest rate swap                                                            |   |                                | **(3**    | **)**                                 |   | 17 |   |   | **(1** | **)** |   | (13 | ) |
| Portion                of swap agreement’s fair value reclassified to interest                expense |   |                                | **52**    |                                  |   | 9 |   |   | **98** |   |   | 21 |   |
| Other                comprehensive income before tax                                                        |   |                                | **49**    |                                  |   | 26 |   |   | **97** |   |   | 8 |   |
|  Income                tax expense                                                                     |   |                                | **(19**   | **)**                                 |   | (10 | ) |   | **(37** | **)** |   | (3 | ) |
| Other                comprehensive income, net of tax                                                       |   |                                | **30**    |                                  |   | 16 |   |   | **60** |   |   | 5 |   |
| Comprehensive                net income                                                                     |   | **$**                               | **2,104** |                                  | $      | 4,874 |   | **$** | **4,739** |   | $ | 9,149 |   |

| 9. | **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                3, 2008                                                    |   |
| Shared                Issued on January 16, 2006                        |   |           |       |                                                          |   |                               |   |         |    |                                                                             |   |
| Issued                                                                  |   |           | 4,851      |                                                          | $      | 15.31                              |   | $            | 74      |                                                                             |   |   |   |   |   |   |
| Forfeited                                                               |   |           | (784       | )                                                             |   | 15.31                              |   |         | (12     | )                                                                                |   |   |   |   |   |   |
| Vested                                                                  |   |           | (147       | )                                                             |   | 15.31                              |   |         | (2      | )                                                                                |   |   |   |   |   |   |
|                                                                    |   |           | 3,920      |                                                          |   |                               |   |         | 60      |                                                                             | $      | 52 |   | $ | 8 |   |
| Shares                Issued on January 15, 2007                        |   |           |       |                                                          |   |                               |   |         |    |                                                                             |   |   |   |   |   |   |
| Issued                                                                  |   |           | 4,875      |                                                          | $      | 15.23                              |   |         | 74      |                                                                             |   | 39 |   |   | 35 |   |
|                                                                    |   |           |       |                                                          |   |                               |   |         |    |                                                                             |   |   |   |   |   |   |
| Shares                Issued on January 15, 2008                        |   |           |       |                                                          |   |                               |   |         |    |                                                                             |   |   |   |   |   |   |
| Issued                                                                  |   |           | 4,335      |                                                          | $      | 19.61                              |   |         | 85      |                                                                             |   | 16 |   |   | 69 |   |
| Awards                outstanding at **August                3, 2008:** |   |           | **13,130** |                                                          |   |                               |   | **$**        | **219** |                                                                             | **$**  | **107** |   | **$** | **112** |   |

| 10. | **Performance                Grants** |
|-----|---------------------------------------|

----

**Earnings      Per Share**

** **

|                                                                                               |   | Twenty-Six                Weeks Ended |       | Thirteen                Weeks Ended |   |
|----------------------------------------------------------------------------------------------------|--------|---------------------------------------|------------|-------------------------------------|--------|
|                                                                                               |   | **August                3,**          |       | July                29,             |   | **August                3,** |   | July                29, |   |
|                                                                                               |   | **2008**                              |       | 2007                                |   | **2008** |   | 2007 |   |
|                                                                                               |   |                                  |       |                                |   |   |   |   |   |
| Net                income                                                                          |   | **$**                                 | **2,074**  |                                | $      | 4,858 |   | **$** | **4,679** |   | $ | 9,144 |   |
|                                                                                               |   |                                  |       |                                |   |   |   |   |   |   |   |   |   |
| Weighted                  average shares outstanding for basic earnings                  per share |   |                                  | **11,234** |                                |   | 12,590 |   |   | **11,383** |   |   | 12,881 |   |
| Dilutive                effect of non-vested restricted stock awards                               |   |                                  | **6**      |                                |   | 4 |   |   | **7** |   |   | 3 |   |
| Weighted                average shares outstanding for diluted earnings per share                  |   |                                  | **11,240** |                                |   | 12,594 |   |   | **11,390** |   |   | 12,884 |   |
|                                                                                               |   |                                  |       |                                |   |   |   |   |   |   |   |   |   |
| Basic                earnings per share                                                            |   | **$**                                 | **0.18**   |                                | $      | 0.39 |   | **$** | **0.41** |   | $ | 0.71 |   |
|                                                                                               |   |                                  |       |                                |   |   |   |   |   |   |   |   |   |
| Diluted                earnings per share                                                          |   | **$**                                 | **0.18**   |                                | $      | 0.39 |   | **$** | **0.41** |   | $ | 0.71 |   |

| 12. | **Common                Stock** |
|-----|---------------------------------|

| 13. | **Accounting                Pronouncements** |
|-----|----------------------------------------------|

| 14. | **Supplier                Commitments** |
|-----|-----------------------------------------|

----

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

|   | · | results                of operations for these periods compared to the fiscal 2008 thirteen-week                second quarter that began April 29, 2007 and the twenty-six week                period                that began January 29, 2007, both ending on July 29, 2007; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | financial                condition as of August 3, 2008. |
|--------|--------|----------------------------------------------------------|

**Overview**

|  | · | Net                sales declined principally due to the industry-wide slow down in                business                at retail, the Company’s exit from domestic wood furniture manufacturing                and lower average selling prices resulting primarily from the mix                of                products shipped;     |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Lower                gross profit margins resulting from the rising cost of imported wood                products and higher raw material costs and overhead absorption as                a                percentage of net sales for domestically-produced upholstered furniture;                and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Higher                selling and administrative expenses                to                support new businesses (Sam Moore upholstered seating and Opus Designs                youth bedroom furniture) and expanded warehousing and distribution.                These                expenses have increased as a percentage of net sales principally                through                the effect of lower sales. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Results      of Operations**

|                                               |   | Thirteen                Weeks Ended |      | Twenty-Six                Weeks Ended |   |
|----------------------------------------------------|--------|-------------------------------------|-----------|---------------------------------------|--------|
|                                               |   | **August                3,**        |      | July                29,               |   | **August                3,** |   | July                29, |   |
|                                               |   | **2008**                            |      | 2007                                  |   | **2008** |   | 2007 |   |
| Net                sales                           |   |                                | **100.0** | **%**                                 |   | 100.0 | % |   | **100.0** | **%** |   | 100.0 | % |
| Cost                of sales                       |   |                                | **71.7**  |                                  |   | 68.7 |   |   | **70.8** |   |   | 70.1 |   |
| Gross                profit                        |   |                                | **28.3**  |                                  |   | 31.3 |   |   | **29.2** |   |   | 29.9 |   |
| Selling                and administrative expenses |   |                                | **23.9**  |                                  |   | 20.5 |   |   | **24.2** |   |   | 20.6 |   |
| Restructuring                (credit) charge       |   |                                | **(0.4**  | **)**                                 |   | 0.6 |   |   | **(0.2** | **)** |   | 0.2 |   |
| Operating                income                    |   |                                | **4.8**   |                                  |   | 10.2 |   |   | **5.2** |   |   | 9.1 |   |
| Other                income, net                   |   |                                | **0.3**   |                                  |   | 0.4 |   |   | **0.3** |   |   | 0.6 |   |
| Income                before income taxes          |   |                                | **5.1**   |                                  |   | 10.6 |   |   | **5.5** |   |   | 9.6 |   |
| Income                taxes                        |   |                                | **1.9**   |                                  |   | 4.0 |   |   | **2.0** |   |   | 3.6 |   |
| Net                income                          |   |                                | **3.2**   |                                  |   | 6.6 |   |   | **3.5** |   |   | 6.1 |   |

|   | · | lower                unit volume attributed to: |
|--------|--------|-------------------------------------------------|

|   | o | the                continued industry-wide slow down in business at retail;                and |
|--------|---|------------------------------------------------------------------------------------------------|

|   | o | lower                shipments of discontinued domestically-produced wood furniture;                and |
|--------|---|---------------------------------------------------------------------------------------------------------|

|   | · | lower                average selling prices principally due                to: |
|--------|--------|--------------------------------------------------------------------------------|

|   | o | the                higher proportion of lower-priced imported products shipped;                and |
|--------|---|----------------------------------------------------------------------------------------------------|

|   | o | higher                sales discounts extended to dealers to promote and stimulate sales. |
|--------|---|-------------------------------------------------------------------------------------------|

|   | · | youth                bedroom products due to the addition of the Opus Designs product                line; |
|--------|--------|------------------------------------------------------------------------------------------------------------|

|   | · | home                entertainment and theater furniture (including living room wall systems);                and |
|--------|--------|------------------------------------------------------------------------------------------------------------------|

|   | · | upholstered                seating imported by Sam Moore. |
|--------|--------|-----------------------------------------------------------|

|   | · | declined                for imported wood furniture and upholstered seating manufactured                or                imported by Sam Moore due to increased shipments of lower-priced                products                (such as Opus Designs youth bedroom furniture sold at more moderate                price                points in the case of wood furniture) and higher sales discounts;                and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | declined                for domestically-produced wood furniture principally due to aggressive                discounting on those discontinued                products. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·  | an              increase in the delivered cost of imported wood furniture as a percentage              of net sales coupled with higher sales discounts to stimulate sales,              partially offset by a modest increase in selected unit selling              prices; |
|--------|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | · | substantial              discounts on discontinued domestically-produced wood furniture;              and |
|--------|--------|-----------------------------------------------------------------------------------------------------------|
|   | ·  | higher              raw material and overhead costs as a percentage of net sales for              domestically-produced upholstered furniture. |
|--------|--------------|------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | a gain on a life insurance policy recorded in the              prior              year (fiscal 2008) second quarter; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------|
|   | · | the costs to operate two new distribution centers              during              the current year quarter, one located in California, which opened in              January 2008 and one in China, which opened in May 2008, both of which              are              owned and operated by third parties. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | lower                unit volume attributed to: |
|--------|--------|-------------------------------------------------|

|   | o | the                continued industry-wide slow down in business at retail;                and |
|--------|---|------------------------------------------------------------------------------------------------|

|   | o | lower                shipments of discontinued domestically-produced wood furniture;                and |
|--------|---|---------------------------------------------------------------------------------------------------------|

|   | · | lower                average selling prices principally due                to: |
|--------|--------|--------------------------------------------------------------------------------|

|   | o | the                higher proportion of lower-priced imported products shipped;                and |
|--------|---|----------------------------------------------------------------------------------------------------|

|   | o | aggressive                discounting on discontinued domestically-produced wood furniture. |
|--------|---|---------------------------------------------------------------------------------------------|

|   | · | imported                wood furniture due to the increased shipments of lower-priced products                (such as Opus Designs youth bedroom furniture, which is sold at more                moderate price points) and higher sales discounts;                and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | upholstered                products due to the addition of Sam Moore since those products generally                carry lower unit prices. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | ·  | an              increase in the delivered cost of imported wood and upholstered furniture              as a percentage of net sales; |
|--------|--------------|--------------------------------------------------------------------------------------------------------------------------------------|
|   | · | substantial              discounts on discontinued domestically-produced wood furniture;              and |
|--------|--------|-----------------------------------------------------------------------------------------------------------|
|   | · | higher                raw material and overhead costs as a percentage of net sales for                domestically-produced upholstered                furniture. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | selling                and administrative expenses incurred at Sam Moore, which was acquired                at                the end of the first quarter of fiscal                2008; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | costs                to operate two new distribution centers during the 2009 first half,                one                located in California, which opened in January 2008, and one in China,                which opened in May 2008; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | increased                advertising and promotional spending to market Opus Designs youth                bedroom                furniture. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | $473,000                for additional severance and related benefit costs and disassembly                costs                associated with the closing of the Martinsville, Va. wood manufacturing                facility in March 2007; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a                credit of $129,000, principally for previously accrued health care                benefits that were not expected to be paid for terminated employees                at the                Pleasant Garden, N.C. facility. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Outlook**

|   | · | measures                to defer, reduce or eliminate certain spending                plans; |
|--------|--------|----------------------------------------------------------------------------------------------|

|   | · | reducing                employment levels to align with reduced volume of incoming                business; |
|--------|--------|-------------------------------------------------------------------------------------------------------------|

|   | · | continued                refinements in managing the Company’s supply chain, warehousing and                distribution operations; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | planned                reductions in inventory levels in the late third and fourth quarters                to                reflect expected business conditions; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | evaluation                of the Company’s domestic upholstery manufacturing work schedules and                facilities for optimal capacity utilization and operating                efficiency. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | the                pursuit of additional distribution channels that the Company believes                will                over time generate additional sales growth; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | continued                evaluation of manufacturing capacity utilization, work schedules                and                operating cost reductions to better match expenses with sales volume                in                the current retail environment. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Financial      Condition, Liquidity and Capital Resources**

|   | · | an                increase in imported wood furniture inventory in preparation for                the fall                selling season; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | lower                sales than anticipated in the summer;                and |
|--------|--------|-------------------------------------------------------------------------------|

|   | · | an                increase in raw materials related to Bradington-Young’s leather upholstery                lines. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------|

----

----

**Accounting      Pronouncements**

**Forward-Looking      Statements**

|   | · | 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 the Company’s                imported products; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the                cyclical nature of the furniture                industry; |
|--------|--------|------------------------------------------------------------------------------|

|   | · | risks                associated with the cost of imported goods, including fluctuation                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 the Company imports products, including duties or tariffs                imposed on products imported by the Company; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | 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; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the                Company’s ability to successfully implement its business plan to increase                Sam Moore Furniture’s and Opus Designs’ sales and improve their 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 catalogs, internet 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 |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | 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. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Item      3. Quantitative and Qualitative Disclosures about Market      Risk**

**Item      4. Controls and Procedures**

**Evaluation      of Disclosure Controls and Procedures**

----

**Changes      in Internal Controls**

**PART      II. OTHER INFORMATION**

**Item      2. Unregistered Sales of Equity Securities and Use of Proceeds**

|                                                   |   |               |        |              |   | **Total Number of**          |   | **Maximum Dollar Value** |        |
|--------------------------------------------------------|--------|--------------------|-------------|-------------------|--------|----------------------------------------|--------|------------------------------------|-------------|
|                                                   |   | **Total**          |        | **Average**       |   | **Shares Purchased**              |   | **of Shares That**       |        |
|                                                   |   | **Number of** |        | **Price**         |   | **as Part of Publicly** |   | **May Yet Be**           |        |
|                                                   |   | **Shares**         |        | **Paid per** |   | **Announced**                          |   | **Purchased Under**           |        |
|                                                   |   | **Purchased**      |        | **Share**         |   | **Program**                            |   | **the Program**               |        |
|                                                   |   |               |        |              |   |                                   |   |                               |        |
| **May                5, 2008 – June 8, 2008**    |   |               | **56,251**  |              | **$**  | **20.05**                              |   |                               | **56,251**  |   | **$** | **11,327,714** |   |
| **June                9, 2008 - July 6, 2008**         |   |               | **371,200** |              |   | **17.52**                              |   |                               | **371,200** |   |   | **5,592,825** |   |
| **July                7, 2008 – August 3, 2008** |   |               | **327,436** |              |   | **17.01**                              |   |                               | **327,436** |   |   | **23,474** |   |
| **Total**                                              |   |               | **754,887** |              | **$**  | **17.95**                              |   |                               | **754,887** |   |   |   |   |

**Item      4. Submission of Matters to a Vote of Security Holders**

| **Director**                              |   | **For** |      | **Withheld** |   |
|-------------------------------------------|--------|---------|-----------|--------------|--------|
| W.                Christopher Beeler, Jr. |   |    | 8,241,172 |         |   | 320,771 |   |
| John                L. Gregory, III       |   |    | 8,494,574 |         |   | 67,369 |   |
| Mark                F. Schreiber          |   |    | 8,371,051 |         |   | 190,892 |   |
| David                G. Sweet             |   |    | 8,363,651 |         |   | 198,292 |   |
| Paul                B. Toms, Jr.          |   |    | 8,499,379 |         |   | 62,564 |   |
| Henry                G. Williamson, Jr.   |   |    | 6,662,988 |         |   | 1,898,955 |   |

----

**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   |         | Amendment                to Employment Agreement, dated June 3, 2008, between Alan D. Cole                and the                Company (incorporated by reference to Exhibit 10.1 of the Company’s Form                8-K filed with the Securities and Exchange Commission on June 5,                2008) |
|             |         |                                                                                                                                                                                                                                                                                                                 |
| 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                   |

----

----

**SIGNATURE**

|                                     |  **HOOKER                  FURNITURE CORPORATION** |
|------------------------------------------|---------------------------------------------------------|
|                                     |                                                    |   |
| Date:                  September 9, 2008 | By:                                                | /s/                  R. Gary Armbrister |  |
|                                     |                                                    | R.                  Gary Armbrister |
|                                     |                                                    | Chief                  Accounting Officer |
|                                     |                                                    | (Principal                  Accounting Officer) |

----

**Exhibit      Index**

| **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       |         | Amendment                to Employment Agreement, dated June 3, 2008, between Alan D. Cole                and the                Company (incorporated by reference to Exhibit 10.1 of the Company’s Form                8-K filed with the Securities and Exchange Commission on June 5,                2008) |
|                 |         |                                                                                                                                                                                                                                                                                                                 |
| 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                   |

----

----