<PAGE>   1
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                            -----------------------


                                   FORM 10-Q

For the Quarter Ended July 3, 1999                 Commission File Number 1-5315


                     =====================================


                            SPRINGS INDUSTRIES, INC.
             (Exact name of registrant as specified in its charter)


                  SOUTH CAROLINA                              57-0252730
     (State or other jurisdiction of                       (I.R.S. Employer
      incorporation or organization)                      Identification No.)


205 North White Street
Fort Mill, South Carolina                                     29715
(Address of principal executive offices)                    (Zip Code)

              Registrant's telephone number, including area code:
                                 (803) 547-1500

                     =====================================


Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for at least the past 90 days.

                           Yes [X]    No [ ]

                     =====================================

As of August 12, 1999, there were 10,719,763 shares of Class A Common Stock and
7,156,663 shares of Class B Common Stock of Springs Industries, Inc.
outstanding.
                     =====================================

There are 23 pages in the sequentially numbered, manually signed original of
this report.


                      The Index to Exhibits is on Page 22


<PAGE>   2

                         TABLE OF CONTENTS TO FORM 10-Q
<TABLE>
<CAPTION>



PART I - FINANCIAL INFORMATION


<S>                                                                                       <C>
ITEM                                                                                      PAGE
----                                                                                      ----

1.                FINANCIAL STATEMENTS                                                      3

2.                MANAGEMENT'S DISCUSSION AND ANALYSIS OF                                  11
                    FINANCIAL CONDITION AND RESULTS OF OPERATIONS

3.                QUANTITATIVE AND QUALITATIVE DISCLOSURES
                    ABOUT MARKET RISK                                                      18



PART II - OTHER INFORMATION


ITEM                                                                                      PAGE
----                                                                                      ----

1.                LEGAL PROCEEDINGS                                                        19


6.                EXHIBITS                                                                 20


SIGNATURES                                                                                 21


EXHIBIT INDEX                                                                              22
</TABLE>


                                      -2-
<PAGE>   3

                         PART I - FINANCIAL INFORMATION
                         ITEM 1.- FINANCIAL STATEMENTS
SPRINGS INDUSTRIES, INC.
Condensed Consolidated Statement of Operations
and Retained Earnings
(In thousands except per share amounts)
(Unaudited)

<TABLE>
<CAPTION>
                                                                   THIRTEEN WEEKS ENDED                   TWENTY-SIX WEEKS ENDED
                                                              ----------------------------          --------------------------------
                                                                JULY 3,           JULY 4,             JULY 3,               JULY 4,
                                                                 1999              1998                1999                  1998
                                                              ---------          ---------          -----------          -----------
<S>                                                          <C>                <C>                <C>                  <C>
OPERATIONS
 Net sales .........................................         $ 544,909          $ 537,082          $ 1,128,909          $ 1,093,818

 Cost and expenses:
   Cost of goods sold ..............................           446,043            443,877              927,399              898,936
   Selling, general and
     administrative expenses .......................            69,787             65,815              139,824              137,621
   Provision for uncollectible
     accounts ......................................             1,589              8,915                4,371               12,110
   Restructuring and
     realignment expenses ..........................                --              1,240                   --               26,090
   Year 2000 expenses ..............................               263              2,331                  715                3,751
   Interest expense ................................             6,561              6,504               12,890               12,058
   Other income, net ...............................              (785)              (480)              (2,312)                (624)
                                                             ---------          ---------          -----------          -----------
   Total ...........................................           523,458            528,202            1,082,887            1,089,942
                                                             ---------          ---------          -----------          -----------

 Income before income taxes ........................            21,451              8,880               46,022                3,876

 Income tax provision ..............................             8,157              3,379               17,484                1,474
                                                             ---------          ---------          -----------          -----------

    Net income .....................................         $  13,294          $   5,501          $    28,538          $     2,402
                                                             =========          =========          ===========          ===========

 Basic earnings per common
  share ............................................         $     .74          $     .29          $      1.60          $       .13
                                                             =========          =========          ===========          ===========

 Diluted earnings per common
  share ............................................         $     .73          $     .28          $      1.57          $       .12
                                                             =========          =========          ===========          ===========

Cash dividends declared per common share:
  Class A common shares ............................         $     .33          $     .33          $       .66          $       .66
                                                             =========          =========          ===========          ===========
  Class B common shares ............................         $     .30          $     .30          $       .60          $       .60
                                                             =========          =========          ===========          ===========
Basic weighted-average
 common shares outstanding .........................            17,866             18,850               17,849               19,123
Dilutive effect of stock-
 based compensation awards .........................               305                466                  281                  509
                                                             ---------          ---------          -----------          -----------
Diluted weighted-average
 common shares outstanding .........................            18,171             19,316               18,130               19,632
                                                             =========          =========          ===========          ===========

RETAINED EARNINGS
 Retained earnings at
  beginning of period ..............................         $ 641,515          $ 663,008          $   631,943          $   701,354
 Net income ........................................            13,294              5,501               28,538                2,402
 Repurchase of Class A
  common stock .....................................                --            (28,194)                  --              (57,253)
 Cash dividends declared ...........................            (5,683)            (6,019)             (11,355)             (12,207)
                                                             ---------          ---------          -----------          -----------

 Retained earnings at end of
  period ...........................................         $ 649,126          $ 634,296          $   649,126          $   634,296
                                                             =========          =========          ===========          ===========
</TABLE>

See Notes to Condensed Consolidated Financial Statements.



                                      -3-
<PAGE>   4

SPRINGS INDUSTRIES, INC.
Condensed Consolidated Balance Sheet
(In thousands except share data)
(Unaudited)

<TABLE>
<CAPTION>
                                                            JULY 3,        JANUARY 2,
                                                             1999             1999
                                                         ------------     ------------
<S>                                                      <C>              <C>
ASSETS
Current assets:
  Cash and cash equivalents ......................       $        691     $     48,127
  Accounts receivable, net .......................            324,959          275,144
  Inventories, net ...............................            434,570          387,988
  Other ..........................................             44,401           75,917
                                                         ------------     ------------
    Total current assets .........................            804,621          787,176
                                                         ------------     ------------

Property, plant and equipment ....................          1,405,845        1,350,223
  Accumulated depreciation .......................           (805,455)        (794,827)
                                                         ------------     ------------
    Property, plant and equipment, net ...........            600,390          555,396
                                                         ------------     ------------
Other assets .....................................            123,895           92,760
                                                         ------------     ------------

    Total ........................................       $  1,528,906     $  1,435,332
                                                         ============     ============

LIABILITIES AND SHAREOWNERS' EQUITY
Current liabilities:
  Short-term borrowings ..........................       $     44,700     $         --
  Current maturities of long-term debt ...........             21,322           21,313
  Accounts payable ...............................            107,987          104,796
  Other accrued liabilities ......................            128,674          106,158
                                                         ------------     ------------
    Total current liabilities ....................            302,683          232,267
                                                         ------------     ------------

Noncurrent liabilities:
  Long-term debt .................................            276,627          267,991
  Accrued benefits and deferred
   compensation ..................................            175,195          179,885
  Other ..........................................             30,433           31,073
                                                         ------------     ------------
    Total noncurrent liabilities .................            482,255          478,949
                                                         ------------     ------------

Shareowners' equity:
  Class A common stock- $.25 par value
    (10,816,382 and 10,728,594 shares
    issued in 1999 and 1998, respectively) .......              2,704            2,682
  Class B common stock- $.25 par value
    (7,156,663 and 7,196,864 shares issued and
    outstanding in 1999 and 1998, respectively) ..              1,789            1,799
  Additional paid-in capital .....................            102,343          100,446
  Retained earnings ..............................            649,126          631,943
  Cost of Class A common shares in treasury
    (96,836 and 98,313 shares in 1999
    and 1998, respectively) ......................             (2,203)          (2,230)
  Accumulated other comprehensive loss ...........             (9,791)         (10,524)
                                                         ------------     ------------
    Total shareowners' equity ....................            743,968          724,116
                                                         ------------     ------------
    Total ........................................       $  1,528,906     $  1,435,332
                                                         ============     ============
</TABLE>

See Notes to Condensed Consolidated Financial Statements.


                                      -4-
<PAGE>   5

SPRINGS INDUSTRIES, INC.
Condensed Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)

<TABLE>
<CAPTION>

                                                                                      TWENTY-SIX WEEKS ENDED
                                                                                      JULY 3,        JULY 4,
                                                                                       1999            1998
                                                                                    ----------     ----------

<S>                                                                                 <C>            <C>
Operating activities:
  Net income ..................................................................     $   28,538     $    2,402
  Adjustments to reconcile net income to net cash
   provided (used) by operating activities:
   Depreciation and amortization ..............................................         51,635         45,372
   Provision for restructuring costs ..........................................             --         23,049
   Provision for uncollectible receivables ....................................          4,371         12,110
   Gains on disposals of property, plant and
     equipment ................................................................         (1,575)          (544)
   Changes in working capital, net ............................................        (63,011)       (93,549)
   Other, net .................................................................         (9,868)         4,307
                                                                                    ----------     ----------
      Net cash provided (used) by operating
        activities ............................................................         10,090         (6,853)
                                                                                    ----------     ----------

Investing activities:
  Purchases of property, plant and
    equipment .................................................................        (83,510)       (67,034)
  Proceeds from sales of property, plant and
    equipment .................................................................          4,161            996
  Proceeds from sales of businesses ...........................................         36,094             --
  Business acquisitions .......................................................        (48,248)            --
  Principal collected on notes receivable .....................................            972          4,215
  Notes receivable ............................................................           (610)           (35)
                                                                                    ----------     ----------
      Net cash used by investing activities ...................................        (91,141)       (61,858)
                                                                                    ----------     ----------

Financing activities:
  Short-term borrowings, net ..................................................         43,479         30,950
  Borrowings on revolving credit agreements ...................................         45,000             --
  Repayments of revolving credit agreements ...................................        (25,000)            --
  Proceeds from long-term debt ................................................             --        125,000
  Repayments of long-term debt ................................................        (14,099)        (7,047)
  Repurchase of Class A common shares .........................................             --        (63,123)
  Proceeds from exercise of stock options .....................................          1,258          1,876
  Cash dividends paid .........................................................        (17,023)       (18,556)
                                                                                    ----------     ----------
      Net cash provided by financing activities ...............................         33,615         69,100
                                                                                    ----------     ----------

Increase (decrease) in cash and cash equivalents ..............................        (47,436)           389
Cash and cash equivalents at beginning of period ..............................         48,127            373
                                                                                    ----------     ----------
Cash and cash equivalents at end of period ....................................     $      691     $      762
                                                                                    ==========     ==========
</TABLE>

See Notes to Condensed Consolidated Financial Statements.


                                      -5-
<PAGE>   6

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


1.       Basis of Presentation and Significant Accounting Policies:

         The accompanying unaudited, condensed, consolidated financial
         statements have been prepared in accordance with generally accepted
         accounting principles for interim financial information and with the
         instructions to Form 10-Q and Article 10 of Regulation S-X.
         Accordingly, they do not include all of the information and footnotes
         required by generally accepted accounting principles for complete
         financial statements. In the opinion of management, all adjustments
         (consisting of normal recurring accruals) necessary for a fair
         presentation have been included. Operating results for the three-month
         and six-month periods ended July 3, 1999, are not necessarily
         indicative of the results that may be expected for the year ending
         January 1, 2000. For further information, refer to the consolidated
         financial statements and footnotes thereto included in the annual
         report on Form 10-K for the year ended January 2, 1999 (the "1998
         Annual Report") of Springs Industries, Inc. ("Springs" or the
         "Company").

         Use of Estimates: Preparation of the Company's condensed consolidated
         financial statements requires management to make estimates and
         assumptions that affect the reported amounts of assets and
         liabilities, disclosures relating to contingent assets and
         liabilities, and the reported amounts of revenues and expenses. Actual
         results could differ from those estimates.

         Reclassifications: Certain prior year amounts have been reclassified
         to conform with the 1999 presentation.

         Recently Issued Accounting Standards: In June 1998, the FASB issued
         Statement No. 133, "Accounting for Derivative Instruments and Hedging
         Activities." This statement establishes accounting and reporting
         standards for derivative instruments and hedging activities. In June
         1999, the FASB deferred the effective date of the provisions of
         Statement No. 133 to all fiscal quarters of all fiscal years beginning
         after June 15, 2000. The Company plans to adopt this standard for its
         2001 fiscal year, and has not determined the impact of this standard
         on its financial position, results of operations, or cash flows.

2.       Accounts Receivable:

         The Company's reserve for doubtful accounts was $14.0 million at July
         3, 1999, compared to $11.7 million at January 2, 1999. The increase in
         the reserve for doubtful accounts reflects a year-to-date provision
         for doubtful accounts of $4.4 million and net write-offs of
         approximately $2.1 million for previously reserved accounts.


                                      -6-
<PAGE>   7

3.       Inventories:

         Inventories are valued at the lower of cost or market and are
         summarized as follows: (in thousands)
<TABLE>
<CAPTION>

                                                          July 3,         January 2,
                                                            1999             1999
                                                         ----------       ----------
<S>                                                      <C>              <C>
Standard cost (which approximates
average cost) or average cost:
 Finished goods ..................................       $  307,843       $  267,143
 In process ......................................          164,277          171,438
 Raw materials and supplies ......................           61,066           54,965
                                                         ----------       ----------
                                                            533,186          493,546
Less LIFO reserve ................................          (98,616)        (105,558)
                                                         ----------       ----------

 Total ...........................................       $  434,570       $  387,988
                                                         ==========       ==========
</TABLE>

4.       Restructuring and Realignment Costs:

                               1996 Restructuring

         As disclosed in the 1998 Annual Report, in the second quarter of 1996
         the Company adopted a restructuring plan to consolidate and realign
         its fabric manufacturing operations. The restructuring plan was
         completed during the fourth quarter of 1998. See MANAGEMENT'S
         DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
         OPERATIONS, RESTRUCTURING AND REALIGNMENT COSTS, for additional
         information.

                               1998 Restructuring

         As disclosed in the 1998 Annual Report, in the first quarter of 1998,
         the Company adopted a restructuring plan to close one of its
         facilities, the Rock Hill Printing and Finishing Plant. The
         restructuring plan was completed during the fourth quarter of 1998.
         See MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
         RESULTS OF OPERATIONS, RESTRUCTURING AND REALIGNMENT COSTS, for
         additional information.

5.       Acquisitions and Divestitures:

         On January 5, 1999, the Company acquired the remaining 50 percent
         interest in American Fiber Industries, LLC ("AFI"), a manufacturer and
         distributor of bed pillows, mattress pads, down comforters and
         comforter accessories. Springs acquired its original 50 percent
         interest in AFI in February 1997 and had been accounting for the
         original investment under the equity method.

         The purchase price for the remaining interest totaled approximately
         $15 million. The Company has accounted for the remaining interest as a
         step-acquisition in accordance with APB Opinion No. 16, "Business
         Combinations" ("APB 16") whereby the purchase price was allocated to
         the assets acquired and to the liabilities assumed based on 50 percent
         of their estimated fair value on the date of acquisition. In addition,
         AFI's operating results have been included in the Company's
         consolidated financial statements beginning as of the acquisition
         date.


                                      -7-
<PAGE>   8

         On January 23, 1999, the Company acquired Regal Rugs, Inc. ("Regal"),
         a subsidiary of Readicut International plc. Regal manufactures bath
         and accent rugs for sale to department and specialty stores, national
         chain stores, and catalog retailers. The purchase price was
         approximately $35 million. The acquisition was accounted for as a
         purchase in accordance with APB 16, and its operating results have
         been included in the Company's consolidated financial statements
         beginning as of the acquisition date. The purchase price was allocated
         to the assets acquired and to the liabilities assumed based on their
         estimated fair market value at the date of acquisition.

         The excess of the purchase price over the fair value of net assets
         acquired, which totaled $34.5 million for both transactions, has been
         recorded as goodwill and is being amortized on a straight-line basis
         over 20 years.

         Effective August 7, 1998, the Company sold its UltraSuede business and
         certain related assets of the UltraFabrics division. Effective
         December 19, 1998, the Company disposed of its Industrial Products
         division. Effective January 2, 1999, the Company disposed of the net
         assets of the Company's Springfield division. Effective March 31,
         1999, the Company sold its UltraLeather business, the remaining
         portion of the UltraFabrics division. First-quarter 1999 sales and
         pretax operating profit before unusual items of the UltraLeather
         business were not material. The combined sales of these businesses and
         pretax operating profit before unusual items included in the Company's
         second quarter 1998 results were $43.7 million and $3.6 million,
         respectively. The operating results for the six-month period ended
         July 4, 1998 included sales and pretax operating profit before unusual
         items of $91.9 million and $8.1 million, respectively, related to
         these businesses.

6.       Accrued Benefits and Deferred Compensation:

         The long-term portion of accrued benefits and deferred compensation
         was comprised of the following: (in thousands)
<TABLE>
<CAPTION>

                                                           July 3,        January 2,
                                                            1999             1999
                                                         ----------       ----------

<S>                                                      <C>              <C>
Postretirement medical benefit obligation ........       $   63,218       $   65,060
Deferred compensation ............................           64,594           66,640
Other employee benefit obligations ...............           47,383           48,185
                                                         ----------       ----------

                                                         $  175,195       $  179,885
                                                         ==========       ==========
</TABLE>

7.       Comprehensive Income:

         Comprehensive income was $29.3 million and $1.5 million for the
         six-month periods ended July 3, 1999, and July 4, 1998, respectively.
         Net income differed from comprehensive income as a result of foreign
         currency translation adjustments.

8.       Contingencies:

         As disclosed in the 1998 Annual Report, Springs is involved in certain
         administrative proceedings governed by environmental laws and


                                      -8-
<PAGE>   9

         regulations, including proceedings under the Comprehensive
         Environmental Response, Compensation, and Liability Act. In connection
         with these proceedings, the Company estimates the range of possible
         losses for such matters to be between $8 million and $13 million and
         has accrued an undiscounted liability of approximately $11 million as
         of July 3, 1999, which represents management's best estimate of
         Springs' probable liability concerning all known environmental
         matters.

         Springs is also involved in various legal proceedings and claims
         incidental to its business. Springs is protecting its interests in all
         such proceedings.

         In the opinion of management, based on the advice of counsel, the
         likelihood that the resolution of the above matters would have a
         material adverse impact on either the financial condition or the
         future results of operations of Springs is remote.

9.       Reportable Segment Information:

         In connection with the Company's recent divestiture of four of its
         specialty fabrics businesses, including its UltraFabrics Division in
         March 1999, Springs realigned its organizational structure during the
         first quarter of 1999 to reflect the Company's strategic focus on the
         home furnishings market, resulting in one reportable segment. The home
         furnishings segment's operating results have been restated to include
         the Company's Retail and Specialty Fabrics unit's operating results,
         which were previously included in the specialty fabrics segment.

         The home furnishings segment offers a variety of products including
         sheets, pillowcases, bedspreads, comforters, infant and toddler
         bedding, shower curtains, accent and bath rugs, towels, other bath
         fashion accessories, home-sewing fabrics, draperies, drapery hardware,
         and decorative window furnishings. The operating results of the
         recently divested specialty fabrics businesses are included in the
         "other" category for the prior year.

         The accounting policies of the home furnishings segment are the same
         as the accounting policies of the Company. The Company evaluates the
         segment's performance based on profit or loss from operations before
         income taxes, unusual items, interest expense, and other income, net.
         Its principal markets and operations are in North America.



                                      -9-
<PAGE>   10
         Based on the current organizational structure, sales and profit from
         operations before unusual items for the home furnishings segment are
         as follows: (in millions)


<TABLE>
<CAPTION>
                                                                  Three Months Ended            Six Months Ended
                                                                 July 3,        July 4,        July 3,     July 4,
                                                                  1999           1998           1999         1998
                                                                --------       --------       --------     --------

         <S>                                                    <C>            <C>            <C>          <C>
         Trade sales:
           Home furnishings ..............................      $  544.9       $  493.4       $1,128.9     $1,001.9
           Other .........................................            --           43.7             --         91.9
                                                                --------       --------       --------     --------
           Total .........................................      $  544.9       $  537.1       $1,128.9     $1,093.8
                                                                ========       ========       ========     ========

         Profit from operations before unusual items:
           Home furnishings ..............................      $   27.5       $   14.9       $   57.3     $   37.1
           Other .........................................            --            3.6             --          8.1
                                                                --------       --------       --------     --------
           Total .........................................          27.5           18.5           57.3         45.2

           Unusual items (1) .............................           0.3            3.6            0.7         29.8
           Interest expense ..............................           6.5            6.5           12.9         12.1
           Other income, net .............................          (0.8)          (0.5)          (2.3)        (0.6)
                                                                --------       --------       --------     --------
           Income before income taxes ....................      $   21.5       $    8.9       $   46.0     $    3.9
                                                                ========       ========       ========     ========
</TABLE>

         (1)     Unusual items for the three-month and six-month periods ended
                 July 3, 1999 represent Year 2000 expenses. In 1998, unusual
                 items included Year 2000 expenses and restructuring and
                 realignment expenses, of which $3.4 million and $29.7 million
                 were charged to the home furnishings segment during the
                 three-month and the six-month periods ended July 4, 1998,
                 respectively.

                 Total assets for the home furnishings segment were $1,528.9
                 million and $1,396.4 million at July 3, 1999, and January 2,
                 1999, respectively.


                                     -10-
<PAGE>   11

               ITEM 2. - MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS

GENERAL

In connection with the Company's recent divestiture of four of its specialty
fabrics businesses, including its UltraFabrics Division in March 1999, Springs
realigned its organizational structure during the first quarter of 1999 to
reflect the Company's strategic focus on the home furnishings market, resulting
in one reportable segment. The home furnishings segment's operating results
have been restated to include the Company's Retail and Specialty Fabrics unit's
operating results, which were previously included in the specialty fabrics
segment.

The home furnishings segment offers a variety of products including sheets,
pillowcases, bedspreads, comforters, infant and toddler bedding, shower
curtains, accent and bath rugs, towels, other bath fashion accessories,
home-sewing fabrics, draperies, drapery hardware, and decorative window
furnishings. During the first quarter of 1999, the Company acquired two home
furnishings businesses. On January 5, 1999, the Company acquired the remaining
50 percent interest in American Fiber Industries, LLC ("AFI"), a manufacturer
and distributor of bed pillows, mattress pads, down comforters and comforter
accessories. The purchase price of the remaining interest totaled approximately
$15 million. The Company has accounted for the remaining interest as a purchase
and AFI's operating results have been included in the Company's consolidated
financial statements beginning as of the acquisition date. On January 23, 1999,
the Company acquired Regal Rugs, Inc ("Regal"). Regal manufactures bath and
accent rugs for sale to department and specialty stores, national chain stores,
and catalog retailers. The purchase price was approximately $35 million. The
acquisition was accounted for as a purchase and Regal's operating results have
been included in the Company's consolidated financial statements beginning as
of the acquisition date.

RESULTS OF OPERATIONS

Sales

Net sales for the second quarter of 1999 were $544.9 million, up 1.5 percent
from the second quarter of 1998. This increase in sales was principally
attributable to the first-quarter acquisitions of AFI and Regal. The sales
growth was partially offset by continued weakness in licensed juvenile bed and
bath products sales volume and the continuing effects on pricing of a
competitive institutional business. Excluding the 1998 sales of the divested
specialty fabrics businesses, net sales increased 10.4 percent over the second
quarter of 1998.

During the first six months of 1999, net sales were $1.129 billion, up 3.2
percent from a year ago. The year-to-date increase reflects higher bed and bath
volume associated with new programs brought to market during the first quarter
of 1999, as well as the second quarter items discussed above. Excluding the
sales of the divested specialty fabrics businesses for the first six months of
1998, net sales increased 12.7 percent.


                                     -11-
<PAGE>   12

Earnings

Net income for the second quarter was $13.3 million, or $0.73 per diluted
share, compared to last year's $5.5 million, or $0.28 per diluted share. In
addition to the unusual items described below, 1998 was lower due to a $7.5
million pretax ($4.7 million after tax) charge in the second quarter of 1998
for uncollectible amounts receivable from certain of the Company's window
fashions customers. Unusual items included Year 2000 expenses in both years and
restructuring and realignment costs in 1998. See YEAR 2000 COMPUTER ISSUE and
RESTRUCTURING AND REALIGNMENT COSTS for additional discussion. Second-quarter
income before unusual items was $13.5 million, or $0.74 per diluted share,
compared to $7.7 million, or $0.40 per diluted share, a year ago.

The Company's pretax operating profit for the second quarter of 1999 increased
$9.0 million over the comparable period in 1998, before the unusual items
discussed above. The profit improvement was attributable principally to
contributions from the acquired businesses, cost reduction initiatives and the
effect of last year's $7.5 million bad debt charge. Excluding the 1998 results
of the divested specialty fabrics businesses, second quarter 1999 operating
profits before unusual items increased $12.6 million over the second quarter of
1998.

Net income for the first six months of 1999 was $28.5 million, or $1.57 per
diluted share, compared to last year's $2.4 million, or $0.12 per diluted
share. In addition to the items previously discussed, the increase was
attributable principally to higher year-to-date sales volumes, reflecting the
new programs brought to market in the first quarter of 1999. Net income before
unusual items was $29.0 million, or $1.60 per diluted share in the first half
of 1999 and $20.9 million, or $1.06 per diluted share in 1998.

Pretax operating profits before the unusual items discussed above were $12.1
million higher in the first six months of 1999 than the same period in 1998.
The increase in operating profits reflects higher sales volumes, including the
acquired businesses, cost reduction initiatives and the 1998 bad debt charge.
Excluding the 1998 results of the divested specialty fabrics businesses, 1999
year-to-date operating profits before unusual items increased $20.2 million
over 1998.

RESTRUCTURING AND REALIGNMENT COSTS

                               1996 Restructuring

As disclosed in the 1998 Annual Report, in the second quarter of 1996, the
Company adopted a restructuring plan to consolidate and realign its fabric
manufacturing operations. The plan benefited operating results by reducing the
volume of linear yards and second-quality units produced, by reducing the
complexity of the finishing process, and by increasing manufacturing
flexibility with respect to the use of finished roll stock. The restructuring
plan was completed during the fourth quarter of 1998.

During the second quarter of 1998, the severance accrual related to the 1996
plan was reduced by $0.9 million due to lower-than-expected average cost per
associate. In addition, during the three-month and six-month periods ended July
4, 1998, the Company incurred realignment expenses of $1.7 million and $3.5
million, respectively, for equipment relocation and other expenses


                                     -12-
<PAGE>   13

related to the 1996 plan. These expenses did not qualify as "exit costs" as
defined by Emerging Issues Task Force Issue No. 94-3.

                               1998 Restructuring

As disclosed in the 1998 Annual Report, in the first quarter of 1998, the
Company adopted a restructuring plan to close one of its facilities, the Rock
Hill Printing and Finishing Plant. At that time, the Company recorded a pretax
charge of $23.0 million, which included an $11.3 million write-off of plant and
equipment, a $4.0 million accrual for anticipated severance costs arising from
the elimination of approximately 480 positions, and a $7.7 million accrual
primarily for idle plant costs, demolition costs, and costs associated with a
defined benefit plan. The benefits derived from this restructuring plan have
been lower product costs and better utilization of existing capacity in other
facilities.

During the second quarter of 1998, the Company also incurred expenses of $0.5
million for equipment relocation and other realignment expenses related to the
plan which did not qualify as "exit costs" as defined by Emerging Issues Task
Force Issue No. 94-3.

The restructuring plan was completed during the fourth quarter of 1998. Springs
reduced the severance accrual in the third quarter of 1998 due to
lower-than-expected costs per associate. In addition, the accrual for other
expenses was reduced in the third quarter of 1998, primarily as a result of
lower-than-anticipated costs associated with a defined benefit plan and the
unexpected sale on September 25, 1998, of the Rock Hill facility. As a result
of the sale, the Company reversed accruals relating to idle plant costs and
demolition costs of approximately $4.3 million in the third quarter of 1998.

CAPITAL RESOURCES AND LIQUIDITY

The Company expects capital expenditures for 1999 to approximate $170 million.
Management believes that cash flow from operations, cash received from
completed sales of assets and businesses, and borrowings from committed bank
lines, commercial paper and available short-term credit facilities will
adequately provide for the Company's cash needs during 1999.

YEAR 2000 COMPUTER ISSUE

Overview

The "Year 2000 Computer Issue" arises because many computer programs use only
two digits to refer to a year. If uncorrected, these computer programs may not
be able to distinguish between the years 1900 and 2000 and consequently may
fail to operate or may produce unpredictable results.

Springs has been addressing the Year 2000 Computer Issue within its information
technology and non-information technology systems through a Company-wide Year
2000 Project. Non-information technology systems typically include embedded
technology such as computer chips within manufacturing equipment and building
security systems. (Information technology and non-information technology
systems are hereinafter referred to as "information systems.") The Company's
Year 2000 Project commenced in 1996 and is directed by an internal Program
Management Office. In general, Springs' Year 2000 Project is proceeding on
schedule.


                                     -13-
<PAGE>   14

In addition, in 1993, the Company began a series of capital investment projects
to improve internal operations and customer service by consolidating and
replacing certain information systems. As part of these capital projects, the
Company has been replacing certain older, non-compliant information systems
with Year 2000 compliant information systems. Substantially all of these
capital projects have been completed. The remaining capital projects will be
completed during the third quarter of 1999, except as disclosed below for
recently acquired businesses.

Year 2000 Project

The Company organized its Year 2000 Project into six broad phases: (1)
development of a Company-wide inventory of information systems, (2) development
of Company-wide standards, processes and guidelines for remediation, testing
and certification, (3) remediation, (4) testing, (5) certification, and (6)
development of contingency plans, as necessary. The Company will certify an
information system as Year 2000 compliant only after the information system
satisfies the Company's established test criteria. The Company completed the
inventory of its information systems in 1997. The Company divided the
remediation of information systems which would not be replaced through a
capital project into two major efforts (business applications and process logic
controllers) and also undertook a project to contact certain key trading
partners.

         (a) Business Applications: This project addresses all Company business
applications, such as general ledger, accounts receivable, order fulfillment
and payroll, and the technical infrastructure which supports them. As of July
3, 1999, the Company has certified approximately 99 percent of its business
applications' lines of code as Year 2000 compliant. The Company expects to
certify the remaining lines of code as Year 2000 compliant by the end of the
third quarter, except as disclosed below for recently acquired businesses.

         (b) Process Logic Controllers: This project addresses the hardware,
software and associated embedded chips that are used in the operation of all
facilities and manufacturing equipment used by the Company. As of July 3, 1999,
the Company has completed the planned remediation or replacement of all but two
of the Company's process logic controllers. The Company will replace these two
non-compliant process logic controllers by the end of the third quarter of
1999.

         (c) Trading Partners: This project involves identifying critical
vendors and customers and communicating with them about their compliance status
and plans. The Company contacted all trading partners with which it does over
$100,000 in business annually, all electronic data interchange trading partners,
any other critical trading partner that did not otherwise meet the criteria, and
all utilities which serve the Company in order to request written information
regarding each trading partner's Year 2000 compliance status. The Company has
been receiving written responses which indicate whether its trading partners are
or plan to become Year 2000 compliant. While the Company is aware that these
written responses may not accurately represent the Year 2000 compliance status
of its trading partners, the Company believes, based on these responses and on
additional communications, that no critical trading partner has a Year 2000
compliance issue that will materially impact the Company's results of
operations, liquidity or capital resources. The Company is continuing to follow
up with its trading partners and to develop contingency plans as necessary.


                                     -14-
<PAGE>   15

Acquisitions

The Company plans to remediate or replace all non-compliant information systems
at its recently acquired businesses prior to the end of the fourth quarter.

Costs

The total cost of the Company's Year 2000 Project is not expected to be
material to the Company's financial position. The Company presently expects to
incur approximately $12 million of pretax expense in connection with its Year
2000 Project. Approximately $2.8 million of pretax expense was incurred in
fiscal 1997, the first year in which the Company incurred Year 2000 expenses.
In addition, expenses totaling approximately $7.1 million were incurred during
1998 related to this effort. Year 2000 expenses were $0.3 million for the
quarter and $0.7 million for the six-month period ended July 3, 1999. The funds
to complete the Year 2000 Project are expected to be provided from cash flow
from operations.

Risks

Because of the numerous uncertainties inherent in the Year 2000 Computer Issue,
the Company cannot ensure, despite its ongoing communications with its trading
partners, that its most important suppliers and customers will be Year 2000
compliant on time. The failure of critical suppliers or customers to timely
correct their Year 2000 Computer Issues could materially and adversely affect
the Company's operations and financial condition, even resulting in
interruption of normal business operations. The Company has developed a
contingency plan to continue transacting business with electronic data
interchange trading partners who do not implement the Year 2000 version of the
electronic data interchange software. The Company has not completed written
contingency plans for the complete business failure of any of its key trading
partners. At this point, any such failure appears to be unlikely. The Company
believes it would be able to identify alternative raw materials suppliers in
the event a critical supplier could not supply raw materials to the Company
because of a Year 2000 problem.

The failure on the part of the Company to timely complete a Year 2000
remediation project or capital project in one or more of its businesses also
could result in an interruption in, or failure of, normal business operations
and could materially and adversely affect the Company's financial condition. At
the end of second quarter, all projects are proceeding substantially according
to plan. The Company believes that all projects will be completed prior to the
end of 1999. The Company will continue to monitor all Year 2000 projects,
including related capital projects, and will develop contingency plans for
specific businesses, if required.

The Company has prepared contingency plans, as necessary, to address the
possibility of information systems failures at its facilities and will continue
to evaluate the need to prepare additional contingency plans.

At this point, the Company cannot determine whether any other contingency plans
are necessary or whether any such plan could completely alleviate the risk to
the Company of its own or a key trading partner's failure to timely become Year
2000 compliant. The lack of Year 2000 compliance by electrical and water
utilities, telecommunications providers, financial institutions, government
agencies or other providers of general infrastructure which are


                                     -15-
<PAGE>   16

outside of the Company's control could, in some geographic areas, prohibit the
Company from carrying out normal operations.

Forward-looking statements contained in this Year 2000 Computer Issue section
should be read in conjunction with the Company's disclosures under the heading
"FORWARD LOOKING INFORMATION" beginning on this page 16.

MARKET RISK SENSITIVE INSTRUMENTS AND POSITIONS

Interest Rate Risk: Springs is exposed to interest rate volatility with regard
to existing issuances of variable rate debt. The Company uses interest rate
swaps to reduce interest rate volatility and funding costs associated with
certain debt issues and to achieve a desired proportion of variable versus
fixed-rate debt, based on current and projected market conditions. The fair
value of the Company's derivative financial instruments and other financial
instruments that are sensitive to changes in interest rates, including interest
rate swaps and debt obligations, has not changed materially at July 3, 1999,
relative to the fair value of such instruments at January 2, 1999.

Commodity Price Risk: The Company is exposed to price fluctuations related to
anticipated purchases of certain raw materials, primarily cotton fiber. Springs
uses a combination of forward delivery contracts and exchange-traded futures
contracts, consistent with the size of its business, to reduce the Company's
exposure to price volatility. Management assesses these contracts on a
continuous basis to determine if contract prices will be recovered through
subsequent sales. The fair value of futures contracts held at July 3, 1999, was
not material, and near-term changes in commodity prices are not expected to
have a material impact on the Company's future earnings or cash flows.

NEW PRONOUNCEMENTS

In June 1998, the FASB issued Statement No. 133, "Accounting for Derivative
Instruments and Hedging Activities." This statement establishes accounting and
reporting standards for derivative instruments and hedging activities. In June
1999, the FASB deferred the effective date of the provisions of Statement No.
133 to all fiscal quarters of all fiscal years beginning after June 15, 2000.
The Company plans to adopt this standard for its 2001 fiscal year, and has not
determined the impact of this standard on its financial position, results of
operations, or cash flows.

FORWARD LOOKING INFORMATION

This Form 10-Q report contains forward-looking statements that are based on
management's expectations, estimates, projections, and assumptions. Words such
as "expects," "believes," "estimates," and variations of such words and similar
expressions are intended to identify such forward-looking statements which
include but are not limited to projections of expenditures, savings, completion
dates, cash flows, and operating performance. Such forward-looking statements
are made pursuant to the safe-harbor provisions of the Private Securities
Litigation Reform Act of 1995. These statements are not guaranties of future
performance; instead, they relate to situations with respect to which certain
risks and uncertainties are difficult to predict. Actual future results and
trends, therefore, may differ materially from what is forecasted or predicted
in forward-looking statements due to a variety of factors, including: the
ability of the Company and its suppliers and


                                     -16-
<PAGE>   17

customers to bring their information systems to readiness for the Year 2000;
the public and political influence on the resolution of issues described in
Part II, Item 1; the health of the retail economy in general, competitive
conditions, and demand for the Company's products; progress toward the
Company's cost-reduction goals; unanticipated natural disasters; legal
proceedings; labor matters; and the availability and price of raw materials
which could be affected by weather, disease, energy costs, or other factors.


                                     -17-
<PAGE>   18

         ITEM 3. - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The information called for by this item is incorporated by reference from this
Form 10-Q under the caption "Market Risk Sensitive Instruments and Positions"
of Item 2 - Management's Discussion and Analysis of Financial Condition and
Results of Operations."


                                     -18-
<PAGE>   19

                          PART II - OTHER INFORMATION
                          ITEM 1. - LEGAL PROCEEDINGS


The Company operates a towel finishing plant in Griffin, Georgia, which
discharges treated wastewater into a creek located near the plant. Because the
plant is unable to meet its National Pollutant Discharge Elimination System
("NPDES") permit for the discharge, the Company negotiated a consent order in
1997 with the Georgia Environmental Protection Division ("EPD").

The consent order requires the Company to achieve compliance by December 6,
1999. The deadline was established by the Environmental Protection Agency
("EPA") in connection with a decision by the Federal District Court, Northern
District of Georgia, involving parties other than the Company. The Company has
developed alternative methods for achieving compliance. The preferred method
would be to construct a pipeline approximately 12 miles in length along state,
county and city right-of-ways in order to discharge the treated wastewater into
the Flint River. Use of these right-of-ways would require approval from these
authorities. On January 5, 1999, the Company applied to EPD for a permit to
discharge into the Flint River. EPD has issued a draft permit and has held one
public hearing regarding the permit. There has been significant public
opposition to issuance of the permit. EPD has announced that it will schedule
another hearing before it takes final action on the permit application.

The Company has determined that it likely will not be able to achieve
compliance with its existing NPDES permit by December 6, 1999. The Company
contemplates that either it or EPD will initiate proceedings to extend the
existing consent order for the period of time necessary to achieve compliance.
Management believes it is unlikely that EPD would deny an extension of the
consent order, but it is possible that the EPD could impose sanctions in excess
of $100,000 in connection with an extension of the consent order. Any action by
EPD will be subject to review by the EPA, which could impose additional
sanctions.


                                     -19-
<PAGE>   20

                               ITEM 6 - EXHIBITS


The following exhibits are filed as part of this report:

         (27)     Financial Data Schedule (for SEC use only)


                                     -20-
<PAGE>   21

                                   SIGNATURES


Pursuant to the requirements of Securities Exchange Act of 1934, Springs
Industries, Inc. has duly caused this Report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                            SPRINGS INDUSTRIES, INC.



                                          By:  /s/ C. Powers Dorsett
                                               -------------------------------
                                               C. Powers Dorsett
                                               Senior Vice President-General
                                               Counsel and Corporate Secretary
                                               (Duly Authorized Officer)


                                          By:  /s/ Charles M. Metzler
                                               -------------------------------
                                               Charles M. Metzler
                                               Vice President-Controller
                                               (Principal Accounting Officer)




DATED:  August 17, 1999


                                     -21-
<PAGE>   22

                                 EXHIBIT INDEX
<TABLE>
<CAPTION>


         Item                                                          Page No.
         ----                                                          --------
         <S>      <C>                                                  <C>

         (27)     Financial Data Schedule (for SEC purposes)             23
</TABLE>


                                     -22-