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| 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  ̈ |

| Common stock, no par value   | 10,782,068         |
|----------------------------------------|--------------------|
| (Class of common stock)           | (Number of shares) |

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Table of Contents 

TABLE OF 

|               |                                                                                        |     |
|--------------------|---------------------------------------------------------------------------------------------|----------|
| PART I.  | FINANCIAL INFORMATION                                                                  |     |
|               |                                                                                        |     |
| Item 1.       | Financial Information                                                                  | 3        |
|               |                                                                                        |     |
| Item 2.       | Management's Discussion and Analysis of Financial Condition and Results of Operations  | 15  |
|               |                                                                                        |     |
| Item 3.       | Quantitative and Qualitative Disclosures about Market Risk                        | 26  |
|               |                                                                                        |     |
| Item 4.       | Controls and Procedures                                                                | 27       |
|               |                                                                                        |     |
| PART II.      | OTHER INFORMATION                                                                      |     |
|               |                                                                                        |     |
| Item 5.       | Other Information                                                                      | 28       |
|               |                                                                                        |     |
| Item 6.       | Exhibits                                                                               | 29  |
|               |                                                                                        |     |
| Signature     |                                                                                        | 30  |

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Table of Contents 

Item 1.  Financial 

|                                                                             |   | August 1, |    |   | January 31, |   |
|----------------------------------------------------------------------------------|--------|-----------|---------|--------|-------------|--------|
|                                                                             |   | 2010      |    |   | 2010        |   |
|                                                                             |   |      |    |   |        |   |
| Assets                                                                           |   |      |    |   |        |   |
| Current Assets                                                                   |   |      |    |   |        |   |
| Cash and cash equivalents                                                        |   | $         | 29,804  |   |        | $      | 37,995 |   |
| Accounts receivable, less allowance for doubtful accounts                        |   |      |    |   |        |   |   |   |
|   of $1,930 and $1,938 on each date                                         |   |      | 27,344  |   |        |   | 25,894 |   |
| Inventories                                                                      |   |      | 46,955  |   |        |   | 36,176 |   |
| Prepaid expenses and other current assets                                        |   |      | 5,564   |   |        |   | 3,468 |   |
| Total current assets                                                             |   |      | 109,667 |   |        |   | 103,533 |   |
| Property, plant, and equipment, net                                              |   |      | 21,631  |   |        |   | 22,747 |   |
| Intangible assets                                                                |   |      | 3,468   |   |        |   | 3,468 |   |
| Cash surrender value of life insurance policies                                  |   |      | 14,218  |   |        |   | 14,810 |   |
| Other assets                                                                     |   |      | 4,690   |   |        |   | 4,541 |   |
| Total assets                                                                     |   | $         | 153,674 |   |        | $      | 149,099 |   |
|                                                                             |   |      |    |   |        |   |   |   |
| Liabilities and Shareholders' Equity                                             |   |      |    |   |        |   |   |   |
| Current Liabilities                                                              |   |      |    |   |        |   |   |   |
| Trade acccounts payable                                                          |   | $         | 13,674  |   |        | $      | 10,425 |   |
| Accrued salaries, wages and benefits                                             |   |      | 2,793   |   |        |   | 2,184 |   |
| Other accrued expenses                                                           |   |      | 1,915   |   |        |   | 1,953 |   |
| Accrued dividends                                                                |   |      | 1,077   |   |        |   | 1,077 |   |
| Total current liabilities                                                        |   |      | 19,459  |   |        |   | 15,639 |   |
| Deferred compensation                                                            |   |      | 6,566   |   |        |   | 5,868 |   |
| Total liabilities                                                                |   |      | 26,025  |   |        |   | 21,507 |   |
|                                                                             |   |      |    |   |        |   |   |   |
| Shareholders' equity                                                             |   |      |    |   |        |   |   |   |
| Common stock, no par value, 20,000 shares authorized,                            |   |      |    |   |        |   |   |   |
|   10,782 and 10,775 shares issued and oustanding on each date, respectively |   |      | 17,110  |   |        |   | 17,076 |   |
| Retained earnings                                                                |   |      | 110,169 |   |        |   | 110,073 |   |
| Accumulated other comprehensive income                                           |   |      | 370     |   |        |   | 443 |   |
| Total shareholders' equity                                                       |   |      | 127,649 |   |        |   | 127,592 |   |
| Total liabilities and shareholders' equity                                       |   | $         | 153,674 |   |        | $      | 149,099 |   |

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Table of Contents 

|                                                                  |   | Thirteen Weeks Ended |   |   | Twenty-Six Weeks Ended |   |
|-----------------------------------------------------------------------|--------|----------------------|--------|--------|------------------------|--------|
|                                                                  |   | August 1,            |   |   | August 2,              |   |   | August 1, |   |   | August 2, |   |
|                                                                  |   | 2010                 |   |   | 2009                   |   |   | 2010 |   |   | 2009 |   |
|                                                                  |   |                 |   |   |                   |   |   |   |   |   |   |   |
| Net sales                                                             |   | $                    | 53,377 |   |                   | $      | 45,978 |   |   | $ | 104,730 |   |   | $ | 98,041 |   |
|                                                                  |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales                                                         |   |                 | 41,421 |   |                   |   | 36,283 |   |   |   | 80,505 |   |   |   | 77,119 |   |
| Casualty loss                                                         |   |                 | 183    |   |                   |   | - |   |   |   | 2,208 |   |   |   | - |   |
| Insurance recovery                                                    |   |                 | (183   | )      |                   |   | - |   |   |   | (1,708 | ) |   |   | - |   |
|    Total cost of sales                                 |   |                 | 41,421 |   |                   |   | 36,283 |   |   |   | 81,005 |   |   |   | 77,119 |   |
|                                                                  |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|       Gross profit                      |   |                 | 11,956 |   |                   |   | 9,695 |   |   |   | 23,725 |   |   |   | 20,922 |   |
|                                                                  |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Selling and administrative expenses                                   |   |                 | 10,387 |   |                   |   | 10,254 |   |   |   | 20,450 |   |   |   | 21,435 |   |
| Asset impairment (credit) charge                                      |   |                 | -      |   |                   |   | (60 | ) |   |   | - |   |   |   | 613 |   |
|                                                                  |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|       Operating income (loss)           |   |                 | 1,569  |   |                   |   | (499 | ) |   |   | 3,275 |   |   |   | (1,126 | ) |
|                                                                  |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expense), net                                           |   |                 | 44     |   |                   |   | (26 | ) |   |   | 56 |   |   |   | (29 | ) |
|                                                                  |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|       Income (loss) before income taxes |   |                 | 1,613  |   |                   |   | (525 | ) |   |   | 3,331 |   |   |   | (1,155 | ) |
|                                                                  |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Income tax expense (benefit)                                          |   |                 | 435    |   |                   |   | (62 | ) |   |   | 1,079 |   |   |   | (236 | ) |
|                                                                  |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|       Net income (loss)                 |   | $                    | 1,178  |   |                   | $      | (463 | ) |   | $ | 2,252 |   |   | $ | (919 | ) |
|                                                                  |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings (loss) per share                                             |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|       Basic                             |   | $                    | 0.11   |   |                   | $      | (0.04 | ) |   | $ | 0.21 |   |   | $ | (0.09 | ) |
|       Diluted                           |   | $                    | 0.11   |   |                   | $      | (0.04 | ) |   | $ | 0.21 |   |   | $ | (0.09 | ) |
|                                                                  |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding:                                  |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|       Basic                             |   |                 | 10,757 |   |                   |   | 10,752 |   |   |   | 10,757 |   |   |   | 10,752 |   |
|       Diluted                           |   |                 | 10,768 |   |                   |   | 10,752 |   |   |   | 10,767 |   |   |   | 10,752 |   |
|                                                                  |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Cash dividends declared per share                                     |   | $                    | 0.10   |   |                   | $      | 0.10 |   |   | $ | 0.20 |   |   | $ | 0.20 |   |

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Table of Contents 

|                                                                                                                             |   | Twenty-Six Weeks Ended |     |
|----------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|----------|
|                                                                                                                             |   | August 1,              |     |   | August 2, |   |
|                                                                                                                             |   | 2010                   |     |   | 2009 |   |
| Cash flows from operating activities                                                                                             |   |                   |     |   |   |   |
|    Cash received from customers                                                                                   |   | $                      | 102,047  |   |   | $ | 105,197 |   |
|    Cash paid to suppliers and employees                                                                           |   |                   | (107,059 | ) |   |   | (77,914 | ) |
|    Insurance proceeds received on casualty loss                                                                   |   |                   | 1,350    |   |   |   | - |   |
|    Income taxes paid, net                                                                                         |   |                   | (1,863   | ) |   |   | (1,021 | ) |
|    Interest paid, net                                                                                             |   |                   | (54      | ) |   |   | (278 | ) |
|       Net cash (used in) provided by operating activities                                          |   | $                      | (5,579   | ) |   | $ | 25,984 |   |
|                                                                                                                             |   |                   |     |   |   |   |   |   |
| Cash flows from investing activities                                                                                             |   |                   |     |   |   |   |   |   |
|    Purchase of property, plant, and equipment                                                                     |   |                   | (382     | ) |   |   | (1,292 | ) |
|    Proceeds from the sale of property and equipment                                                               |   |                   | 18       |   |   |   | 13 |   |
|    Premiums paid on officers' life insurance                                                                      |   |                   | (1,195   | ) |   |   | (1,259 | ) |
|    Proceeds received on officers' life insurance                                                                  |   |                   | 1,102    |   |   |   | 986 |   |
|       Net cash used in investing activities                                                        |   |                   | (457     | ) |   |   | (1,552 | ) |
|                                                                                                                             |   |                   |     |   |   |   |   |   |
| Cash flows from financing activities                                                                                             |   |                   |     |   |   |   |   |   |
|    Proceeds from short-term borrowing                                                                             |   |                   | -        |   |   |   | 4,532 |   |
|    Payments on short-term borrowing                                                                               |   |                   | -        |   |   |   | (1,882 | ) |
|    Cash dividends paid                                                                                            |   |                   | (2,155   | ) |   |   | (2,154 | ) |
|    Payments on long-term debt                                                                                     |   |                   | -        |   |   |   | (1,423 | ) |
|       Net cash used in financing activities                                                        |   |                   | (2,155   | ) |   |   | (927 | ) |
|                                                                                                                             |   |                   |     |   |   |   |   |   |
| Net (decrease) increase in cash and cash equivalents                                                                             |   | $                      | (8,191   | ) |   | $ | 23,505 |   |
| Cash and cash equivalents at the beginning of the period                                                                         |   |                   | 37,995   |   |   |   | 11,804 |   |
|    Cash and cash equivalents at the end of the period                                                             |   | $                      | 29,804   |   |   | $ | 35,309 |   |
|                                                                                                                             |   |                   |     |   |   |   |   |   |
| Reconciliation of net income to net cash provided by operating activities:                                                       |   |                   |     |   |   |   |   |   |
|    Net income (loss)                                                                                              |   | $                      | 2,252    |   |   | $ | (919 | ) |
|        Depreciation and amortization                                                          |   |                   | 1,500    |   |   |   | 1,506 |   |
|        Non-cash restricted stock awards and performance grants                                |   |                   | 34       |   |   |   | 40 |   |
|        Restructuring and asset impairment charges                                             |   |                   | -        |   |   |   | 613 |   |
|        Provision for doubtful accounts                                                        |   |                   | 100      |   |   |   | 601 |   |
|        Deferred income taxes                                                                  |   |                   | (787     | ) |   |   | (964 | ) |
|        Loss on disposal of property                                                           |   |                   | -        |   |   |   | 101 |   |
|        Changes in assets and liabilities:                                                     |   |                   |     |   |   |   |   |   |
|           Accounts receivable                                                  |   |                   | (1,551   | ) |   |   | 6,516 |   |
|           Inventories                                                          |   |                   | (10,779  | ) |   |   | 18,730 |   |
|           Prepaid expenses and other current assets                            |   |                   | (792     | ) |   |   | 214 |   |
|           Trade accounts payable                                               |   |                   | 3,249    |   |   |   | (674 | ) |
|           Accrued salaries, wages, and benefits                                |   |                   | 609      |   |   |   | 352 |   |
|           Accrued income taxes                                                 |   |                   | 3        |   |   |   | - |   |
|           Other accrued expenses                                               |   |                   | (41      | ) |   |   | (580 | ) |
|           Deferred compensation                                                |   |                   | 624      |   |   |   | 384 |   |
|           Other long-term liabilities                                          |   |                   | -        |   |   |   | 64 |   |
|              Net cash (used in) provided by operating activties |   | $                      | (5,579   | ) |   | $ | 25,984 |   |

----

Table of Contents 

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

| §   | the 2011 fiscal year and comparable terminology mean the fiscal year that began February 1, 2010 and will end January 30, 2011; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------|

| §   | the 2010 fiscal year and comparable terminology mean the fiscal year that began February 2, 2009 and ended January 31, 2010. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents 

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

|                                  |   | August 1, |   |   | January 31, |   |
|---------------------------------------|--------|-----------|--------|--------|-------------|--------|
|                                  |   | 2010      |   |   | 2010        |   |
|                                  |   |      |   |   |        |   |
| Finished furniture                    |   | $         | 49,741 |   |        | $      | 40,205 |   |
| Furniture in process                  |   |      | 621    |   |        |   | 798 |   |
| Materials and supplies                |   |      | 9,654  |   |        |   | 7,258 |   |
|    Inventories at FIFO |   |      | 60,016 |   |        |   | 48,261 |   |
| Reduction to LIFO basis               |   |      | 13,061 |   |        |   | 12,085 |   |
|    Inventories         |   | $         | 46,955 |   |        | $      | 36,176 |   |

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

|                                                 |   | August 1, |   |   | January 31, |   |
|------------------------------------------------------|--------|-----------|--------|--------|-------------|--------|
|                                                 |   | 2010      |   |   | 2010        |   |
| Buildings and land improvements                      |   | $         | 23,819 |   |        | $      | 23,708 |   |
| Machinery and equipment                              |   |      | 3,563  |   |        |   | 3,507 |   |
| Furniture and fixtures                               |   |      | 27,724 |   |        |   | 27,494 |   |
| Other                                                |   |      | 4,104  |   |        |   | 4,043 |   |
|    Total depreciable property at cost |   |      | 59,210 |   |        |   | 58,752 |   |
| Less accumulated depreciation                        |   |      | 39,100 |   |        |   | 37,603 |   |
|    Total depreciable property, net    |   |      | 20,110 |   |        |   | 21,149 |   |
| Land                                                 |   |      | 1,357  |   |        |   | 1,357 |   |
| Construction in progress                             |   |      | 164    |   |        |   | 241 |   |
|    Property, plant and equipment, net |   | $         | 21,631 |   |        | $      | 22,747 |   |

----

Table of Contents 

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

|                                              |   | August 1, |   |   | January 31, |   |
|---------------------------------------------------|--------|-----------|--------|--------|-------------|--------|
|                                              |   | 2010      |   |   | 2010        |   |
| Non-amortizable Intangible Assets                 |   |      |   |   |        |   |
| Trademarks and trade names - Bradington-Young     |   | $         | 2,676  |   |        | $      | 2,676 |   |
| Trademarks and trade names - Sam Moore            |   |      | 396    |   |        |   | 396 |   |
| Trademarks and trade names - Opus Designs         |   |      | 396    |   |        |   | 396 |   |
|    Total trademarks and tradenames |   |      | 3,468  |   |        |   | 3,468 |   |

| 5. | Accounts Receivable |
|----|---------------------|

|                                  |   | August 1, |   |   | January 31, |   |
|---------------------------------------|--------|-----------|--------|--------|-------------|--------|
|                                  |   | 2010      |   |   | 2010        |   |
|                                  |   |      |   |   |        |   |
| Trade accounts receivable             |   | $         | 22,598 |   |        | $      | 19,400 |   |
| Receivable from factor                |   |      | 6,676  |   |        |   | 8,432 |   |
| Allowance for doubtful accounts       |   |      | (1,930 | )      |        |   | (1,938 | ) |
|    Accounts receivable |   | $         | 27,344 |   |        | $      | 25,894 |   |

----

Table of Contents 

| 6.   | Other Comprehensive Income (Loss) |
|----------------|-----------------------------------|

|                                                                                       |   | Thirteen Weeks Ended |   |   | Twenty-Six Weeks Ended |   |
|--------------------------------------------------------------------------------------------|--------|----------------------|--------|--------|------------------------|--------|
|                                                                                       |   | August 1,            |   |   | August 2,              |   |   | August 1, |   |   | August 2, |   |
|                                                                                       |   | 2010                 |   |   | 2009                   |   |   | 2010 |   |   | 2009 |   |
| Net income                                                                                 |   | $                    | 1,178  |   |                   | $      | (463 | ) |   | $ | 2,252 |   |   | $ | (919 | ) |
| Loss on interest rate swap                                                                 |   |                 | -      |   |                   |   | (7 | ) |   |   | - |   |   |   | (26 | ) |
| Portion of swap agreement's fair value                                                     |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|       reclassified to interest expense                       |   |                 | -      |   |                   |   | 56 |   |   |   | - |   |   |   | 118 |   |
| Unrealized gain on interest rate swap                                                      |   |                 | -      |   |                   |   | 49 |   |   |   | - |   |   |   | 92 |   |
| Portion of accumulated acturial gain on Supplemental                                       |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|       Retirement Income Plan reclassified to deferred        |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|          compensation expense                 |   |                 | (59    | )      |                   |   | (55 | ) |   |   | (119 | ) |   |   | (110 | ) |
| Other comprehensive loss before tax                                                        |   |                 | (59    | )      |                   |   | (6 | ) |   |   | (119 | ) |   |   | (18 | ) |
| Income tax benefit                                                                         |   |                 | 22     |   |                   |   | 2 |   |   |   | 45 |   |   |   | 7 |   |
|          Other comprehensive loss, net of tax |   |                 | (37    | )      |                   |   | (4 | ) |   |   | (74 | ) |   |   | (11 | ) |
|       Comprehensive net income (loss)                        |   | $                    | 1,141  |   |                   | $      | (467 | ) |   | $ | 2,178 |   |   | $ | (930 | ) |

| 7.  | Supplier Receivable |
|----------|---------------------|

----

Table of Contents 

| 8.    | Earnings Per Share |
|----------------------|--------------------|

|                                                                                                                                 |   | Thirteen Weeks Ended |   |   | Twenty-Six Weeks Ended |   |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|--------|------------------------|--------|
|                                                                                                                                 |   | August 1,            |   |   | August 2,              |   |   | August 1, |   |   | August 2, |   |
|                                                                                                                                 |   | 2010                 |   |   | 2009                   |   |   | 2010 |   |   | 2009 |   |
|                                                                                                                                 |   |                 |   |   |                   |   |   |   |   |   |   |   |
| Net income                                                                                                                           |   | $                    | 1,178  |   |                   | $      | (463 | ) |   | $ | 2,252 |   |   | $ | (919 | ) |
|    Less: Unvested participating restricted stock dividends                                                            |   |                 | 2      |   |                   |   | 2 |   |   |   | 4 |   |   |   | 4 |   |
|               Net earnings allocated to unvested participating |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|               restricted stock                                 |   |                 | -      |   |                   |   | - |   |   |   | - |   |   |   | - |   |
| Earnings available for common shareholders                                                                                           |   |                 | 1,176  |   |                   |   | (465 | ) |   |   | 2,248 |   |   |   | (923 | ) |
|                                                                                                                                 |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding for basic                                                                                        |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|        earnings per share                                                                         |   |                 | 10,757 |   |                   |   | 10,752 |   |   |   | 10,757 |   |   |   | 10,752 |   |
| Dilutive effect of non-vested restricted stock awards                                                                                |   |                 | 11     |   |                   |   | - |   |   |   | 10 |   |   |   | - |   |
|    Weighted average shares outstanding for diluted                                                                    |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|        earnings per share                                                                         |   |                 | 10,768 |   |                   |   | 10,752 |   |   |   | 10,767 |   |   |   | 10,752 |   |
|                                                                                                                                 |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings (loss) per share                                                                                                      |   | $                    | 0.11   |   |                   | $      | (0.04 | ) |   | $ | 0.21 |   |   | $ | (0.09 | ) |
|                                                                                                                                 |   |                 |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted earnings (loss) per share                                                                                                    |   | $                    | 0.11   |   |                   | $      | (0.04 | ) |   | $ | 0.21 |   |   | $ | (0.09 | ) |

----

Table of Contents 

| 9.    | Long Term Debt and Interest Rate Swaps |
|----------------------|----------------------------------------|

|               |   |     |   |   | Fixed    |   |            |   |              |   |
|--------------------|--------|----------|--------|--------|----------|--------|-----------------|--------|-------------------|--------|
|               |   | Notional |   |   | Interest |   |            |   |              |   |
| Agreement          |   | Amount   |   |   | Rate     |   | Expiration Date |   | Fair Value        |   |
|               |   |     |   |   |     |   |            |   |              |   |
| Interest rate swap |   | $        | 787    |   |     |   | 3.09            | %      | September 1, 2010 |   | $ | (6 | ) |

----

Table of Contents 

|                                   |                                                                                                                                                                        |   Fair Value at Dates Indicated |
|----------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------|
|                                   |   Carrying Value and                                                                                                                                                   |                                      | Quoted Prices in |   | Significant |   |   |
|                                   | Balance Sheet                                                                                                                                                               |                                      | Active Markets |   | Other |   | Significant |
|                                   |  Location                                                                                                                                                              |                                      | for Identical |   | Observable |   | Unobservable |
|                                   | (Other Accrued                                                                                                                                                              |                                      | Instruments |   | Inputs |   | Inputs |
|                                   | Expenses)                                                                                                                                                                   |                                      | (Level 1) |   | (Level 2) |   | (Level 3) |
|                                   |                                                                                                                                                                        |                                      |   |   |   |   |   |
| Interest rate swap at August 1, 2010   |  $                           (6 | )                                         |   |   |  $               (6 | ) |   |
| Interest rate swap at January 31, 2010 |                             (33 | )                                         |   |   |                 (33 | )  |   |

|                                                                                           |   | Thirteen Weeks Ended |   |   | Twenty-Six Weeks Ended |   |
|------------------------------------------------------------------------------------------------|--------|----------------------|--------|--------|------------------------|--------|
|                                                                                           |   | August 1,            |   |   | August 2,              |   |   | August 1, |   |   | August 2, |   |
|                                                                                           |   | 2010                 |   |   | 2009                   |   |   | 2010 |   |   | 2009 |   |
| Interest rate swap:                                                                            |   |                 |   |   |                   |   |   |   |   |   |   |   |
| Loss recognized in other comprehensive income                                                  |   | $                    | -      |   |                   | $      | (7 | ) |   | $ | - |   |   | $ | (26 | ) |
| Loss reclassified from accumulated other  comprehensive income into interest expense, net |   |                 | -      |   |                   |   | 56 |   |   |   |  - |   |   |   | 118 |   |
| Loss recognized in net income                                                                  |   |                 | -      |   |                   |   | - |   |   |   | - |   |   |   | - |   |

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| 10.  | Employee Benefit Plans |
|-----------|------------------------|

|                                                          |   | Thirteen Weeks Ended |   |   | Twenty-Six Weeks Ended |   |
|---------------------------------------------------------------|--------|----------------------|--------|--------|------------------------|--------|
|                                                          |   | August 1,            |   |   | August 2,              |   |   | August 1, |   |   | August 2, |   |
|                                                          |   | 2010                 |   |   | 2009                   |   |   | 2010 |   |   | 2009 |   |
| Net periodic benefit cost                                     |   |                 |   |   |                   |   |   |   |   |   |   |   |
|    Service cost                                |   | $                    | 146    |   |                   | $      | 158 |   |   | $ | 292 |   |   | $ | 316 |   |
|    Interest cost                               |   |                 | 85     |   |                   |   | 89 |   |   |   | 170 |   |   |   | 178 |   |
|    Actuarial gain                              |   |                 | (59    | )      |                   |   | (54 | ) |   |   | (118 | ) |   |   | (108 | ) |
|       Net periodic benefit cost |   | $                    | 172    |   |                   | $      | 193 |   |   | $ | 344 |   |   | $ | 386 |   |

| 11.  | IncomeTaxes |
|-----------|-------------|

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| 12.  | Casualty Loss |
|-----------|---------------|

| 13. | Subsequent Events |
|-----|-------------------|

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Item 2.  Management’s 

| §   | the 2011 fiscal year and comparable terminology mean the fiscal year that began February 1, 2010 and will end January 30, 2011; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------|

| §   | the 2010 fiscal year and comparable terminology mean the fiscal year that began February 2, 2009 and ended January 31, 2010. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

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| §   | Net sales increased by $7.4 million, or 16.1%, to $53.4 million during the fiscal year 2011 second quarter, compared to net sales of $46.0 million during the fiscal year 2010 second quarter.  This is the first overall sales increase since our fiscal year 2008 fourth quarter. For the first half of fiscal 2011, net sales increased $6.7 million or 6.8% compared to the same fiscal 2010 period. These quarterly and year-to-date increases reflect increased incoming order rates in our upholstery divisions. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Gross margins for the fiscal 2011 second quarter and fiscal 2011 first half improved primarily due to: |
|--------------------|--------------------------------------------------------------------------------------------------------|

| □   | lower freight costs as a percentage of sales for casegoods and the savings from the closure  of our California warehouse, partially offset by the $500,000 charge related to the fire at one of our distribution facilities during our fiscal 2011 first quarter; and |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| □   | increased margins at our upholstery division, primarily due to increased upholstery sales. |
|---------------------|--------------------------------------------------------------------------------------------|

| §   | The improvement in gross margin in the first half of fiscal 2011 was partially offset by a $500,000 net charge ($312,000 or $0.03 per share, after tax) to cost of sales to recognize our insurance deductible for a fire that occurred at one of our distribution facilities during the fiscal 2011 first quarter. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Selling and administrative expenses decreased as a percentage of sales compared to the corresponding three and six month fiscal year 2010 periods, primarily as a result of cost cutting measures implemented during fiscal 2010, and, lower selling expenses, professional fees and bad debts. Selling and administrative expenses also decreased in absolute terms for the fiscal 2011 first half. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Operating income for the fiscal year 2011 second quarter was $1.6 million, or 2.9% of net sales, compared to an operating loss of $499,000, or -1.1% of net sales, in the fiscal year 2010 second quarter. For the six-month periods, operating income was $3.3 million or 3.1% of net sales in the fiscal year 2011 first half, compared to an operating loss of $1.1 million or -1.2% of net sales, for fiscal 2010. This improvement was principally due to improved domestic upholstery plant utilization and the lack of asset impairment activity during the fiscal year 2011 first half, as compared to the corresponding prior year period, partially offset by expenses related to the fire at our distribution center. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                               |   | Thirteen Weeks Ended |   |   | Twenty-Six Weeks Ended |   |
|----------------------------------------------------|--------|----------------------|--------|--------|------------------------|--------|
|                                               |   | August 1,            |   |   | August 2,              |   |   | August 1, |   |   | August 2, |   |
|                                               |   | 2010                 |   |   | 2009                   |   |   | 2010 |   |   | 2009 |   |
| Net sales                                          |   |                 | 100.0  | %      |                   |   | 100.0 | % |   |   | 100.0 | % |   |   | 100.0 | % |
| Cost of sales                                      |   |                 | 77.6   |   |                   |   | 78.9 |   |   |   | 76.8 |   |   |   | 78.7 |   |
| Casualty loss                                      |   |                 | 0.3    |   |                   |   | - |   |   |   | 2.1 |   |   |   | - |   |
| Insurance recovery                                 |   |                 | (0.3   | )      |                   |   | - |   |   |   | (1.6 | ) |   |   | - |   |
| Total cost of sales                                |   |                 | 77.6   |   |                   |   | 78.9 |   |   |   | 77.4 |   |   |   | 78.7 |   |
| Gross profit                                       |   |                 | 22.4   |   |                   |   | 21.1 |   |   |   | 22.7 |   |   |   | 21.3 |   |
| Selling and administrative expenses                |   |                 | 19.5   |   |                   |   | 22.3 |   |   |   | 19.5 |   |   |   | 21.9 |   |
| Restructuring and asset impairment (credit) charge |   |                 | -      |   |                   |   | (0.1 | ) |   |   | - |   |   |   | 0.6 |   |
| Operating income (loss)                            |   |                 | 2.9    |   |                   |   | (1.1 | ) |   |   | 3.1 |   |   |   | (1.2 | ) |
| Other income, net                                  |   |                 | 0.1    |   |                   |   | - |   |   |   | 0.1 |   |   |   | - |   |
| Income (loss) before income taxes                  |   |                 | 3.0    |   |                   |   | (1.1 | ) |   |   | 3.3 |   |   |   | (1.2 | ) |
| Income tax expense (benefit)                       |   |                 | 0.8    |   |                   |   | (0.1 | ) |   |   | 1.0 |   |   |   | (0.2 | ) |
| Net income (loss)                                  |   |                 | 2.2    |   |                   |   | (1.0 | ) |   |   | 2.2 |   |   |   | (1.0 | ) |

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|                   |   | Thirteen Weeks Ended |   |   | Twenty-Six Weeks Ended |                |
|------------------------|--------|----------------------|--------|--------|------------------------|---------------------|
|                   |   | August 1, 2010       |   |   | August 2, 2009         |                |   | August 1, 2010 |   |   | August 2, 2009 |   |
|                   |   |                 | $      |   |                   | % Segment Net Sales |   |   |   | $ |   |   | % Segment Net Sales |   |   |   | $ |   |   | % Segment Net Sales |   |   |   | $ |   |   | % Segment Net Sales |   |
| Net Sales              |   |                 |   |   |                   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Casegoods  |   | $                    | 34.5   |   |                   |                |   |   | $ | 31.9 |   |   |   |   |   | $ | 67.1 |   |   |   |   |   | $ | 69.1 |   |   |   |   |
|   Upholstery |   |                 | 18.9   |   |                   |                |   |   |   | 14.1 |   |   |   |   |   |   | 37.6 |   |   |   |   |   |   | 28.9 |   |   |   |   |
|   Total      |   | $                    | 53.4   |   |                   |                |   |   | $ | 46.0 |   |   |   |   |   | $ | 104.7 |   |   |   |   |   | $ | 98.0 |   |   |   |   |
|                   |   |                 |   |   |                   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross Margin           |   |                 |   |   |                   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Casegoods  |   | $                    | 9.3    |   |                   |                | 27.1 | % |   | $ | 8.1 |   |   |   | 25.2 | % |   | $ | 18.7 |   |   |   | 27.9 | % |   | $ | 17.7 |   |   |   | 25.6 | % |
|   Upholstery |   |                 | 2.6    |   |                   |                | 13.8 | % |   |   | 1.6 |   |   |   | 11.7 | % |   |   | 5.0 |   |   |   | 13.3 | % |   |   | 3.3 |   |   |   | 11.3 | % |
|   Total      |   | $                    | 12.0   |   |                   |                | 22.4 | % |   | $ | 9.7 |   |   |   | 21.1 | % |   | $ | 23.7 |   |   |   | 22.7 | % |   | $ | 21.0 |   |   |   | 21.3 | % |
|                   |   |                 |   |   |                   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating Margin       |   |                 |   |   |                   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Casegoods  |   | $                    | 2.3    |   |                   |                | 6.6 | % |   | $ | 0.9 |   |   |   | 3.0 | % |   | $ | 5.0 |   |   |   | 7.5 | % |   | $ | 2.6 |   |   |   | 3.7 | % |
|   Upholstery |   |                 | (0.7   | )      |                   |                | -3.7 | % |   |   | (1.4 | ) |   |   | -10.3 | % |   |   | (1.7 | ) |   |   | -4.6 | % |   |   | (3.7 | ) |   |   | -12.8 | % |
|   Total      |   | $                    | 1.6    |   |                   |                | 2.9 | % |   | $ | (0.5 | ) |   |   | -1.1 | % |   | $ | 3.3 |   |   |   | 3.1 | % |   | $ | (1.1 | ) |   |   | -1.2 | % |

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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 |
|--------------------|-------------------------------------------------------------------------------------------------------|

| §   | increasing inventory levels to respond to increasing sales and extended lead times from our suppliers. |
|--------------------|--------------------------------------------------------------------------------------------------------|

| §   | pursuing additional distribution channels and offering an array of new products and designs, which are generating additional sales growth; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| §   | taking actions to streamline our domestic upholstery operations, by improving efficiency and reducing overhead; and, |
|--------------------|----------------------------------------------------------------------------------------------------------------------|

| §   | continuing to evaluate our operating costs to better match costs to current sales volume levels. |
|--------------------|--------------------------------------------------------------------------------------------------|

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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 respective businesses; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | 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; 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; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | 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; and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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Item 3.  Quantitative 

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Item 4.  Controls 

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Item 5.  Other Information

| §   | The types of awards permitted under the 2010 Incentive Plan include restricted stock, stock options, stock appreciation rights, restricted stock units, performance shares (shares tied to the attainment of performance objectives), performance share units and performance grants. The prior plan permitted only grants of restricted stock, restricted stock units, stock appreciation rights and performance grants. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Under the 2010 Incentive Plan annual automatic restricted stock awards for outside directors will be issued on the third business day following each annual meeting of shareholders (instead of the tenth business day in January, as under the prior plan) and the number of shares awarded will be determined based on fees paid to outside directors on an annual meeting-to-annual meeting basis (instead of on a calendar year basis, as under the prior plan). |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Item 6.

| 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 | 2010 Amendment and Restatement of the Hooker Furniture Corporation 2005 Stock Incentive Plan (incorporated by reference to Appendix A of the Company’s Definitive Proxy Statement dated May 7, 2010 (SEC File No. 000-25349)) |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2 | Employment Agreement between Bruce R. Cohenour and Hooker Furniture Corporation, dated June 8, 2010 (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K (SEC File No. 000-25349) filed on June 10, 2010)** |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.3* | Summary of Director Compensation** |
|-------|------------------------------------|

| 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 |
|-----------------|

| ** Management contract or compensatory plan |
|---------------------------------------------|

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SIGNA

|                    | HOOKER FURNITURE CORPORATION |                                                                                                                                                                                                                                                                                |
|-------------------------|------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                    |                         |                                                                                                                                                                                                                                                                                |   |
| Date: September 8, 2010 | By:                          | /s/ E. Larry Ryder                                           |   |
|                    |                         | E. Larry Ryder                                                                                                                                                                                                                                                                      |   |
|                    |                         | Executive Vice President – Finance and                                                                                                                                                                                                                                        |   |
|                    |                         | Administration and Chief Financial Officer                                                                                                                                                                                                                                          |   |

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