|   | (Mark                one)                                                                                                              |
|--------|----------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                   |
| (X)    | QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE                ACT OF                1934  |
|   | For                the quarterly period ended June                30, 2006                or                                           |
|   |                                                                                                                                   |
|   | TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE                ACT OF                1934 |
|   | For                the transition period from ____________ to ____________                                                             |
|   |                                                                                                                                   |
|   | Commission                file number I-91                                                                                             |

| Furniture                Brands International, Inc.                                  |
|--------------------------------------------------------------------------------------|
| (Exact                name of registrant as specified in its                charter) |

| Delaware                                            |   | 43-0337683                         |
|-----------------------------------------------------|--------|------------------------------------|
| (State                or other jurisdiction of      |   | (I.R.S.                Employer    |
|  incorporation                or organization) |   | Identification                No.) |

| 101                South Hanley Road, St. Louis, Missouri |   | 63105                     |
|-----------------------------------------------------------|--------|---------------------------|
| (Address                of principal executive offices)   |   | (Zip                Code) |

| (Registrant's                telephone number, including area code) |   | (314)                863-1100 |
|---------------------------------------------------------------------|--------|-------------------------------|

|                                                                                                           |
|----------------------------------------------------------------------------------------------------------------|
| Former                name, former address and former fiscal year, if changed since last                report |

|   |   | Yes                (X)      No (  ) ) |
|--------|--------|--------------------------------------------------------------------------|

| Large                Accelerated Filer (X) | Accelerated                Filer ( ) | Non-Accelerated                Filer ( ) |
|--------------------------------------------|--------------------------------------|------------------------------------------|

|   |   | Yes                ( )      No (X) ) |
|--------|--------|---------------------------------------------------------------|

----

| Item                1. Financial                Statements                                      |
|------------------------------------------------------------------------------------------------------|
|                                                                                                 |
| Consolidated                Financial Statements for the quarter ended June 30,                2006. |
|                                                                                                 |
| Consolidated                Balance Sheets:                                                          |
|                                                                                                 |
| June                30, 2006                                                                         |
| December                31, 2005                                                                     |
|                                                                                                 |
| Consolidated                Statements of Operations:                                                |
|                                                                                                 |
| Three                Months Ended June 30, 2006                                                      |
| Three                Months Ended June 30, 2005                                                      |
| Six                Months Ended June 30, 2006                                                        |
| Six                Months Ended June 30, 2005                                                        |
|                                                                                                 |
|                                                                                                 |
| Consolidated                Statements of Cash Flows:                                                |
|                                                                                                 |
| Six                Months Ended June 30, 2006                                                        |
| Six                Months Ended June 30, 2005                                                        |
|                                                                                                 |
| Notes                to Consolidated Financial Statements                                            |
|                                                                                                 |

----

|                                                                                    |   | June                  30, |      | December                  31, |   |
|-----------------------------------------------------------------------------------------|--------|---------------------------|-----------|-------------------------------|--------|
|                                                                                    |   | 2006                      |      | 2005                          |   |
| ASSETS                                                                                  |   |                      |      |                          |   |   |   |
|                                                                                    |   |                      |      |                          |   |   |   |
| Current                  assets:                                                        |   |                      |      |                          |   |   |   |
| Cash                  and cash equivalents                                              |   | $                         | 58,978    |                          | $      | 114,322 |   |
| Receivables,                  less allowances of $23,425 ($23,368 at December 31, 2005) |   |                      | 371,531   |                          |   | 349,202 |   |
| Inventories                  (Note 1)                                                   |   |                      | 488,760   |                          |   | 432,814 |   |
| Deferred                  income taxes                                                  |   |                      | 25,756    |                          |   | 25,540 |   |
| Prepaid                  expenses and other current assets                              |   |                      | 10,924    |                          |   | 9,790 |   |
| Total                  current assets                                                   |   |                      | 955,949   |                          |   | 931,668 |   |
|                                                                                    |   |                      |      |                          |   |   |   |
| Property,                  plant and equipment                                          |   |                      | 642,201   |                          |   | 666,079 |   |
| Less                  accumulated depreciation                                          |   |                      | 403,711   |                          |   | 415,262 |   |
| Net                  property, plant and equipment                                      |   |                      | 238,490   |                          |   | 250,817 |   |
|                                                                                    |   |                      |      |                          |   |   |   |
| Goodwill                                                                                |   |                      | 182,507   |                          |   | 182,507 |   |
| Other                  intangible assets                                                |   |                      | 169,671   |                          |   | 169,671 |   |
| Other                  assets                                                           |   |                      | 43,007    |                          |   | 47,561 |   |
|                                                                                    |   | $                         | 1,589,624 |                          | $      | 1,582,224 |   |
|                                                                                    |   |                      |      |                          |   |   |   |
| LIABILITIES                  AND SHAREHOLDERS' EQUITY                                   |   |                      |      |                          |   |   |   |
|                                                                                    |   |                      |      |                          |   |   |   |
| Current                  liabilities:                                                   |   |                      |      |                          |   |   |   |
| Accounts                  payable                                                       |   | $                         | 110,369   |                          | $      | 101,860 |   |
| Accrued                  employee compensation                                          |   |                      | 29,704    |                          |   | 30,605 |   |
| Other                  accrued expenses                                                 |   |                      | 70,766    |                          |   | 81,020 |   |
| Total                  current liabilities                                              |   |                      | 210,839   |                          |   | 213,485 |   |
|                                                                                    |   |                      |      |                          |   |   |   |
| Long-term                  debt                                                         |   |                      | 300,800   |                          |   | 301,600 |   |
| Deferred                  income taxes                                                  |   |                      | 46,352    |                          |   | 60,668 |   |
| Other                  long-term liabilities (Note 8)                                   |   |                      | 130,135   |                          |   | 102,519 |   |
|                                                                                    |   |                      |      |                          |   |   |   |
| Shareholders'                  equity:                                                  |   |                      |      |                          |   |   |   |
| Preferred                  stock, authorized 10,000,000                                 |   |                      |      |                          |   |   |   |
| shares,                  no par value - issued, none                                    |   |                      | -         |                          |   | - |   |
| Common                  stock, authorized 200,000,000 shares,                           |   |                      |      |                          |   |   |   |
| $1.00                  stated value - issued 56,482,541                                 |   |                      |      |                          |   |   |   |
| shares                  at June 30, 2006 and December 31, 2005                          |   |                      | 56,483    |                          |   | 56,483 |   |
| Paid-in                  capital                                                        |   |                      | 224,811   |                          |   | 221,754 |   |
| Retained                  earnings                                                      |   |                      | 851,421   |                          |   | 820,025 |   |
| Accumulated                  other comprehensive income (expense) (Note 3)         |   |                      | (46,933   | )                             |   | (41,382 | ) |
| Treasury                  stock at cost (8,162,789 shares at                            |   |                      |      |                          |   |   |   |
| June                  30, 2006 and 6,814,963 shares at                                  |   |                      |      |                          |   |   |   |
| December                  31, 2005)                                                     |   |                      | (184,284  | )                             |   | (152,928 | ) |
| Total                  shareholders' equity                                             |   |                      | 901,498   |                          |   | 903,952 |   |
|                                                                                    |   | $                         | 1,589,624 |                          | $      | 1,582,224 |   |

----

|                                                                |   | Three                Months |       | Three                Months |   |
|---------------------------------------------------------------------|--------|-----------------------------|------------|-----------------------------|--------|
|                                                                |   | Ended                       |       | Ended                       |   |
|                                                                |   | June                30,     |       | June                30,     |   |
|                                                                |   | 2006                        |       | 2005                        |   |
|                                                                |   |                        |       |                        |   |
| Net                sales                                            |   | $                           | 601,275    |                        | $      | 593,753 |   |
|                                                                |   |                        |       |                        |   |   |   |
| Cost                of sales                                        |   |                        | 465,120    |                        |   | 460,457 |   |
|                                                                |   |                        |       |                        |   |   |   |
| Gross                profit                                         |   |                        | 136,155    |                        |   | 133,296 |   |
|                                                                |   |                        |       |                        |   |   |   |
| Selling,                general and administrative expenses         |   |                        | 106,020    |                        |   | 116,670 |   |
|                                                                |   |                        |       |                        |   |   |   |
| Earnings                from operations                             |   |                        | 30,135     |                        |   | 16,626 |   |
|                                                                |   |                        |       |                        |   |   |   |
| Interest                expense                                     |   |                        | 4,727      |                        |   | 2,846 |   |
|                                                                |   |                        |       |                        |   |   |   |
| Other                income, net                                    |   |                        | 2,040      |                        |   | 644 |   |
|                                                                |   |                        |       |                        |   |   |   |
| Earnings                before income tax expense                   |   |                        | 27,448     |                        |   | 14,424 |   |
|                                                                |   |                        |       |                        |   |   |   |
| Income                tax expense                                   |   |                        | 10,470     |                        |   | 4,833 |   |
|                                                                |   |                        |       |                        |   |   |   |
| Net                earnings                                         |   | $                           | 16,978     |                        | $      | 9,591 |   |
|                                                                |   |                        |       |                        |   |   |   |
| Net                earnings per common share:                       |   |                        |       |                        |   |   |   |
|                                                                |   |                        |       |                        |   |   |   |
| Basic                                                               |   | $                           | 0.35       |                        | $      | 0.18 |   |
|                                                                |   |                        |       |                        |   |   |   |
| Diluted                                                             |   | $                           | 0.35       |                        | $      | 0.18 |   |
|                                                                |   |                        |       |                        |   |   |   |
| Weighted                average common shares outstanding (Note 2): |   |                        |       |                        |   |   |   |
|                                                                |   |                        |       |                        |   |   |   |
|                                                                |   |                        |       |                        |   |   |   |
| Basic                                                               |   |                        | 48,853,193 |                        |   | 52,684,127 |   |
|                                                                |   |                        |       |                        |   |   |   |
| Diluted                                                             |   |                        | 48,853,193 |                        |   | 52,822,030 |   |
|                                                                |   |                        |       |                        |   |   |   |

----

|                                                                |   | Six                Months |       | Six                Months |   |
|---------------------------------------------------------------------|--------|---------------------------|------------|---------------------------|--------|
|                                                                |   | Ended                     |       | Ended                     |   |
|                                                                |   | June                30,   |       | June                30,   |   |
|                                                                |   | 2006                      |       | 2005                      |   |
|                                                                |   |                      |       |                      |   |
| Net                sales                                            |   | $                         | 1,262,720  |                      | $      | 1,235,318 |   |
|                                                                |   |                      |       |                      |   |   |   |
| Cost                of sales                                        |   |                      | 972,626    |                      |   | 952,085 |   |
|                                                                |   |                      |       |                      |   |   |   |
| Gross                profit                                         |   |                      | 290,094    |                      |   | 283,233 |   |
|                                                                |   |                      |       |                      |   |   |   |
| Selling,                general and administrative expenses         |   |                      | 222,584    |                      |   | 228,086 |   |
|                                                                |   |                      |       |                      |   |   |   |
| Earnings                from operations                             |   |                      | 67,510     |                      |   | 55,147 |   |
|                                                                |   |                      |       |                      |   |   |   |
| Interest                expense                                     |   |                      | 7,688      |                      |   | 5,948 |   |
|                                                                |   |                      |       |                      |   |   |   |
| Other                income, net (Note 7)                           |   |                      | 12,578     |                      |   | 2,534 |   |
|                                                                |   |                      |       |                      |   |   |   |
| Earnings                before income tax expense                   |   |                      | 72,400     |                      |   | 51,733 |   |
|                                                                |   |                      |       |                      |   |   |   |
| Income                tax expense                                   |   |                      | 25,200     |                      |   | 17,358 |   |
|                                                                |   |                      |       |                      |   |   |   |
| Net                earnings                                         |   | $                         | 47,200     |                      | $      | 34,375 |   |
|                                                                |   |                      |       |                      |   |   |   |
| Net                earnings per common share:                       |   |                      |       |                      |   |   |   |
|                                                                |   |                      |       |                      |   |   |   |
| Basic                                                               |   | $                         | 0.96       |                      | $      | 0.65 |   |
|                                                                |   |                      |       |                      |   |   |   |
| Diluted                                                             |   | $                         | 0.96       |                      | $      | 0.65 |   |
|                                                                |   |                      |       |                      |   |   |   |
| Weighted                average common shares outstanding (Note 2): |   |                      |       |                      |   |   |   |
|                                                                |   |                      |       |                      |   |   |   |
|                                                                |   |                      |       |                      |   |   |   |
| Basic                                                               |   |                      | 49,185,858 |                      |   | 52,946,529 |   |
|                                                                |   |                      |       |                      |   |   |   |
| Diluted                                                             |   |                      | 49,185,858 |                      |   | 53,151,658 |   |
|                                                                |   |                      |       |                      |   |   |   |

----

|                                                                                                          |   | Six                Months |     | Six                Months |   |
|---------------------------------------------------------------------------------------------------------------|--------|---------------------------|----------|---------------------------|--------|
|                                                                                                          |   | Ended                     |     | Ended                     |   |
|                                                                                                          |   | June                30,   |     | June                30,   |   |
|                                                                                                          |   | 2006                      |     | 2005                      |   |
|                                                                                                          |   |                      |     |                      |   |
| Cash                flows from operating activities:                                                          |   |                      |     |                      |   |   |   |
| Net                earnings                                                                                   |   | $                         | 47,200   |                      | $      | 34,375 |   |
| Adjustments                to reconcile net earnings to net cash                                              |   |                      |     |                      |   |   |   |
| provided                by operating activities:                                                              |   |                      |     |                      |   |   |   |
| Depreciation                and amortization                                                                  |   |                      | 19,397   |                      |   | 23,576 |   |
| Compensation                expense related to stock option grants and restricted stock                awards |   |                      | 3,154    |                      |   | 111 |   |
| Provision                (benefit) for deferred income taxes                                                  |   |                      | (6,382   | )                         |   | (2,726 | ) |
| Other,                net                                                                                     |   |                      | (5,525   | )                         |   | 11,029 |   |
| Changes                in operating assets and liabilities:                                                   |   |                      |     |                      |   |   |   |
| Accounts                receivable                                                                            |   |                      | (22,329  | )                         |   | 17,744 |   |
| Inventories                                                                                                   |   |                      | (55,946  | )                         |   | 4,681 |   |
| Prepaid                expenses and other assets                                                              |   |                      | 2,701    |                      |   | (11,822 | ) |
| Accounts                payable and other accrued expenses                                                    |   |                      | 4,095    |                      |   | (2,019 | ) |
| Other                long-term liabilities                                                                    |   |                      | 8,878    |                      |   | 9,324 |   |
| Net                cash provided (used) by operating activities                                               |   |                      | (4,757   | )                         |   | 84,273 |   |
|                                                                                                          |   |                      |     |                      |   |   |   |
| Cash                flows from investing activities:                                                          |   |                      |     |                      |   |   |   |
| Proceeds                from the disposal of assets                                                           |   |                      | 4,496    |                      |   | 3,312 |   |
| Additions                to property, plant and equipment                                                     |   |                      | (14,464  | )                         |   | (15,507 | ) |
| Net                cash used by investing activities                                                          |   |                      | (9,968   | )                         |   | (12,195 | ) |
|                                                                                                          |   |                      |     |                      |   |   |   |
| Cash                flows from financing activities:                                                          |   |                      |     |                      |   |   |   |
| Proceeds                from termination of cash flow hedges                                                  |   |                      | 8,623    |                      |   | - |   |
| Payments                for debt issuance costs                                                               |   |                      | (1,185   | )                         |   | - |   |
| Additions                to long-term debt                                                                    |   |                      | 450,000  |                      |   | - |   |
| Payments                of long-term debt                                                                     |   |                      | (450,800 | )                         |   | (800 | ) |
| Proceeds                from the exercise of stock options                                                    |   |                      | 8,095    |                      |   | 3,742 |   |
| Tax                benefit from the exercise of stock options                                                 |   |                      | 527      |                      |   | - |   |
| Payments                of cash dividends                                                                     |   |                      | (15,804  | )                         |   | (15,892 | ) |
| Payments                for the purchase of treasury stock                                                    |   |                      | (40,075  | )                         |   | (24,933 | ) |
| Net                cash used by financing activities                                                          |   |                      | (40,619  | )                         |   | (37,883 | ) |
|                                                                                                          |   |                      |     |                      |   |   |   |
| Net                increase (decrease) in cash and cash equivalents                                           |   |                      | (55,344  | )                         |   | 34,195 |   |
| Cash                and cash equivalents at beginning of period                                               |   |                      | 114,322  |                      |   | 51,248 |   |
| Cash                and cash equivalents at end of period                                                     |   | $                         | 58,978   |                      | $      | 85,443 |   |
|                                                                                                          |   |                      |     |                      |   |   |   |
| Supplemental                disclosure:                                                                       |   |                      |     |                      |   |   |   |
|                                                                                                          |   |                      |     |                      |   |   |   |
| Cash                payments for income taxes, net                                                            |   | $                         | 42,339   |                      | $      | 32,450 |   |
|                                                                                                          |   |                      |     |                      |   |   |   |
| Cash                payments for interest expense                                                             |   | $                         | 4,397    |                      | $      | 6,040 |   |
|                                                                                                          |   |                      |     |                      |   |   |   |

----

| (1) | Inventories                are summarized as follows: |
|-----|-------------------------------------------------------|

|                             |   | June                30, |    | December                31, |   |
|----------------------------------|--------|-------------------------|---------|-----------------------------|--------|
|                             |   | 2006                    |    | 2005                        |   |
|                             |   |                    |    |                        |   |
| Finished                products |   | $                       | 331,429 |                        | $      | 275,985 |   |
| Work-in-process                  |   |                    | 42,993  |                        |   | 43,747 |   |
| Raw                materials     |   |                    | 114,338 |                        |   | 113,082 |   |
|                             |   | $                       | 488,760 |                        | $      | 432,814 |   |

| (2) | Weighted                average shares used in the computation of basic and diluted net earnings                per common share are as follows: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

|                                          |   | Three                Months |       | Three                Months |   | Six                Months |   | Six                Months |       |
|-----------------------------------------------|--------|-----------------------------|------------|-----------------------------|--------|---------------------------|--------|---------------------------|------------|
|                                          |   | Ended                       |       | Ended                       |   | Ended                     |   | Ended                     |       |
|                                          |   | June                30,     |       | June                30,     |   | June                30,   |   | June                30,   |       |
|                                          |   | 2006                        |       | 2005                        |   | 2006                      |   | 2005                      |       |
| Weighted                average shares used   |   |                        |       |                        |   |                      |   |                      |       |   |   |   |   |
| for                basic net earnings per     |   |                        |       |                        |   |                      |   |                      |       |   |   |   |   |
| common                share                   |   |                        | 48,853,193 |                        |   | 52,684,127                |   |                      | 49,185,858 |   |   | 52,946,529 |   |
| Effect                of dilutive securities: |   |                        |       |                        |   |                      |   |                      |       |   |   |   |   |
| Stock                options                  |   |                        | -          |                        |   | 137,903                   |   |                      | -          |   |   | 205,129 |   |
| Weighted                average shares used   |   |                        |       |                        |   |                      |   |                      |       |   |   |   |   |
| for                diluted net earnings       |   |                        |       |                        |   |                      |   |                      |       |   |   |   |   |
| per                common share               |   |                        | 48,853,193 |                        |   | 52,822,030                |   |                      | 49,185,858 |   |   | 53,151,658 |   |

|                                  |   | Three                Months |      | Three                Months |   | Six                Months |   | Six                Months |      |
|---------------------------------------|--------|-----------------------------|-----------|-----------------------------|--------|---------------------------|--------|---------------------------|-----------|
|                                  |   | Ended                       |      | Ended                       |   | Ended                     |   | Ended                     |      |
|                                  |   | June                30,     |      | June                30,     |   | June                30,   |   | June                30,   |      |
|                                  |   | 2006                        |      | 2005                        |   | 2006                      |   | 2005                      |      |
|                                  |   |                        |      |                        |   |                      |   |                      |      |
| Stock                options          |   |                        | 2,934,200 |                        |   | 3,506,850                 |   |                      | 2,840,700 |   |   | 2,576,150 |   |
| Average                exercise price |   | $                           | 26.20     |                        | $      | 25.23                     |   | $                         | 26.32     |   | $ | 26.59 |   |

| (3) | Comprehensive                income (expense) is as follows: |
|-----|--------------------------------------------------------------|

|                                                                   |   | Six                Months |   | Six                Months |   |
|------------------------------------------------------------------------|--------|---------------------------|--------|---------------------------|--------|
|                                                                   |   | Ended                     |   | Ended                     |   |
|                                                                   |   | June                30,   |   | June                30,   |   |
|                                                                   |   | 2006                      |   | 2005                      |   |
|                                                                   |   |                      |   |                      |   |
| Net                earnings                                            |   | $                         | 47,200 |                      | $      | 34,375 |   |
| Other                comprehensive income (expense), net of tax:       |   |                      |   |                      |   |   |   |
| Change                in fair value of financial instruments accounted |   |                      |   |                      |   |   |   |
| for                as hedges                                           |   |                      | (5,663 | )                         |   | 789 |   |
| Foreign                currency translation                            |   |                      | 112    |                      |   | 37 |   |
| Other                comprehensive income (expense)                    |   |                      | (5,551 | )                         |   | 826 |   |
|                                                                   |   | $                         | 41,649 |                      | $      | 35,201 |   |

----

|                                                         |   | June                30, |    | December                31, |   |
|--------------------------------------------------------------|--------|-------------------------|---------|-----------------------------|--------|
|                                                         |   | 2006                    |    | 2005                        |   |
|                                                         |   |                    |    |                        |   |
| Fair                value of financial instruments accounted |   |                    |    |                        |   |   |   |
| for                as hedges                                 |   | $                       | -       |                        | $      | 5,663 |   |
| Minimum                pension liability                     |   |                    | (46,608 | )                           |   | (46,608 | ) |
| Foreign                currency translation                  |   |                    | (325    | )                           |   | (437 | ) |
|                                                         |   | $                       | (46,933 | )                           | $      | (41,382 | ) |

| (4) | Effective                  January 1, 2006 we adopted Statement of Financial Accounting Standard                  No.                  123 (Revised 2004) - Share-Based Payment (SFAS No. 123R) using                  the                  modified prospective application transition method. Under the modified                  prospective approach, the provisions of SFAS No. 123R are applied                  to new                  awards and to awards modified, repurchased or cancelled after the                  effective date. Additionally, compensation cost is also recognized                  for the                  unvested portion of awards granted prior to adoption. Prior year                  financial                  statements are not restated. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|                                                                                                                  |   | Three                Months Ended |   | Six                Months Ended |   |
|------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|--------|---------------------------------|--------|
|                                                                                                             |   | June                30, 2005           |   | June                30, 2005    |   |
|                                                                                                             |   |                                   |   |                            |   |
| Net                earnings                                                                                      |   | $                                      | 9,591  |                            | $      | 34,375 |   |
|                                                                                                             |   |                                   |   |                            |   |   |   |
| Deduct:                Stock-based employee compensationexpense                determined under fair value based |   |                                   |   |                            |   |   |   |
| method,                net of income tax benefits                                                                |   |                                   | (1,121 | )                               |   | (2,220 | ) |
|                                                                                                             |   |                                   |   |                            |   |   |   |
| Net                earnings - pro forma                                                                          |   | $                                      | 8,470  |                            | $      | 32,155 |   |
|                                                                                                             |   |                                   |   |                            |   |   |   |
| Earnings                per share - basic:                                                                       |   |                                   |   |                            |   |   |   |
| As                reported                                                                                       |   | $                                      | 0.18   |                            | $      | 0.65 |   |
| Pro                forma                                                                                         |   | $                                      | 0.16   |                            | $      | 0.61 |   |
|                                                                                                             |   |                                   |   |                            |   |   |   |
| Earnings                per share - diluted:                                                                     |   |                                   |   |                            |   |   |   |
| As                reported                                                                                       |   | $                                      | 0.18   |                            | $      | 0.65 |   |
| Pro                forma                                                                                         |   | $                                      | 0.16   |                            | $      | 0.61 |   |

----

|                                              |   |   |      |     |   | Weighted                    |   |      |   |
|---------------------------------------------------|--------|--------|-----------|----------|--------|-----------------------------|--------|-----------|--------|
|                                              |   |   |      | Weighted |   | Average                     |   |      |   |
|                                              |   |   |      | Average  |   | Remaining                   |   | Aggregate |   |
|                                              |   |   |      | Exercise |   | Contractual                 |   | Intrinsic |   |
|                                              |   | Shares |      | Price    |   | Term                (Years) |   | Value     |   |
| Outstanding                at December 31, 2005   |   |   | 3,916,350 |     | $      | 23.88                       |   |      |   |   |   |   |   |
| Granted                                           |   |   | 658,800   |     |   | 24.82                       |   |      |   |   |   |   |   |
| Exercised                                         |   |   | (395,625  | )        |   | 20.46                       |   |      |   |   |   |   |   |
| Cancelled                                         |   |   | (172,550  | )        |   | 24.55                       |   |      |   |   |   |   |   |
| Outstanding                at June 30, 2006       |   |   | 4,006,975 |     | $      | 24.34                       |   |      | 5.8    |   | $ | 2,051 |   |
|  Exercisable                at June 30, 2006 |   |   | 2,619,300 |     | $      | 24.30                       |   |      | 4.3    |   | $ | 1,872 |   |

|                                   |   | 2006   |   | 2005   |   |
|----------------------------------------|--------|--------|--------|--------|--------|
|                                   |   |   |   |   |   |
| Risk-free                interest rate |   |   | 4.40   | %      |   | 3.75 | % |
| Expected                dividend yield |   |   | 2.42   | %      |   | 2.58 | % |
| Expected                term (years)   |   |   | 5.5    |   |   | 6.0 |   |
| Expected                volatility     |   |   | 39.93  | %      |   | 42.71 | % |
|                                   |   |   |   |   |   |   |   |

|                                                 |   | Three                Months Ended |   | Six                Months Ended |   |
|------------------------------------------------------|--------|-----------------------------------|--------|---------------------------------|--------|
|                                                 |   | June                30,           |   | June                30,         |   | June                30, |   | June                30, |   |
|                                                 |   | 2006                              |   | 2005                            |   | 2006 |   | 2005 |   |
|                                                 |   |                              |   |                            |   |   |   |   |   |
| Weighted                average fair value per share |   |                              |   |                            |   |   |   |   |   |   |   |   |   |
| of                options granted                    |   | $                                 | 8.60   |                            | $      | 7.45 |   | $ | 8.61 |   | $ | 8.40 |   |
|                                                 |   |                              |   |                            |   |   |   |   |   |   |   |   |   |
| Total                intrinsic value of              |   |                              |   |                            |   |   |   |   |   |   |   |   |   |
| stock                options exercised               |   | $                                 | 280    |                            | $      | 2,072 |   | $ | 1,392 |   | $ | 2,722 |   |

----

|                                                   |   | Shares |    |
|--------------------------------------------------------|--------|--------|---------|
| Non-vested                balance at December 31, 2005 |   |   | 52,166  |   |
| Granted                                                |   |   | 56,190  |   |
| Vested                                                 |   |   | (13,334 | ) |
| Forfeited                                              |   |   | (14,941 | ) |
| Non-vested                balance at June 30, 2006     |   |   | 80,081  |   |

| (5) | The                components of net periodic pension cost for Company-sponsored defined                benefit plans are as follows: |
|-----|---------------------------------------------------------------------------------------------------------------------------------------|

|                                          |   | Six                Months Ended |    |
|-----------------------------------------------|--------|---------------------------------|---------|
|                                          |   | June                30,         |    | June                30, |   |
|                                          |   | 2006                            |    | 2005 |   |
|                                          |   |                            |    |   |   |
| Service                cost                   |   | $                               | 2,900   |   | $ | 6,800 |   |
| Interest                cost                  |   |                            | 12,250  |   |   | 12,850 |   |
| Expected                return on plan assets |   |                            | (12,750 | ) |   | (13,000 | ) |
| Net                amortization and deferral  |   |                            | 3,509   |   |   | 3,337 |   |
|                                          |   | $                               | 5,909   |   | $ | 9,987 |   |

| (6) | We                have provided guarantees related to store leases for certain independent                dealers opening Company-branded stores (e.g., Thomasville Home Furnishings                Stores). The guarantees range from one to fifteen years and generally                require us to make lease payments in the event of default by the                dealer.                In the event of default, we have the right to assign or assume the                lease.                The total future lease payments guaranteed at June 30, 2006 were                $87,728.                We consider the estimated loss on these guarantees to be insignificant;                therefore, as of June 30, 2006 we have not recorded any contingent                liability for lease guarantees. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Long-term debt as of June 30, 2006 consisted of              the              following: |
|-----|------------------------------------------------------------------------------------------|

| Revolving                credit facility |   | $      | 150,000 |   |
|------------------------------------------|--------|--------|---------|--------|
| 6.83%                Senior Notes        |   |   | 150,000 |   |
| Other                                    |   |   | 800     |   |
|                                     |   | $      | 300,800 |   |

----

| (8) | Other                long-term liabilities consists of the                following: |
|-----|--------------------------------------------------------------------------------------|

|                             |   | June                30, |    | December                31, |   |
|----------------------------------|--------|-------------------------|---------|-----------------------------|--------|
|                             |   | 2006                    |    | 2005                        |   |
|                             |   |                    |    |                        |   |
| Pension                Liability |   | $                       | 77,201  |                        | $      | 72,678 |   |
| Other                            |   |                    | 52,934  |                        |   | 29,841 |   |
|                             |   | $                       | 130,135 |                        | $      | 102,519 |   |

----

**RESULTS      OF OPERATIONS**

|                                                           |   | Three                  Months Ended  |         |
|----------------------------------------------------------------|--------|--------------------------------------|--------------|
|                                                           |   | June                  30, 2006  |    | June                  30, 2005 |   |
|                                                           |   |                                 |         | %                  of   |    |   |   | %                  of |   |
|                                                           |   | Dollars                              |         | Net                  Sales  |   | Dollars |   | Net                  Sales |   |
| Net                  sales                                     |   | $                                    | 601.3        |   |   | 100.0 | % | $ | 593.8 |   |   | 100.0 | % |
| Cost                  of sales                                 |   |                                 | 465.1        |   |   | 77.4 |   |   | 460.5 |   |   | 77.6 |   |
| Gross                  profit                                  |   |                                 | 136.2        |   |   | 22.6 |   |   | 133.3 |   |   | 22.4 |   |
| Selling,                  general and administrative expenses  |   |                                 | 106.0        |   |   | 17.6 |   |   | 116.7 |   |   | 19.6 |   |
| Earnings                  from operations                      |   |                                 | 30.2         |   |   | 5.0 |   |   | 16.6 |   |   | 2.8 |   |
| Interest                  expense                              |   |                                 | 4.7          |   |   | 0.8 |   |   | 2.8 |   |   | 0.5 |   |
| Other                  income, net                             |   |                                 | 2.0          |   |   | 0.3 |   |   | 0.6 |   |   | 0.1 |   |
| Earnings                  before income tax expense            |   |                                 | 27.5         |   |   | 4.5 |   |   | 14.4 |   |   | 2.4 |   |
| Income                  tax expense                            |   |                                 | 10.5         |   |   | 1.7 |   |   | 4.8 |   |   | 0.8 |   |
| Net                  earnings                                  |   | $                                    | 17.0         |   |   | 2.8 | % | $ | 9.6 |   |   | 1.6 | % |
|  Net                  earnings per common share - diluted |   | $                                    | 0.35         |   |   | - |   | $ | 0.18 |   |   | - |   |

|                                                           |   | Six                  Months Ended    |    |
|----------------------------------------------------------------|--------|--------------------------------------|---------|
|                                                           |   | June                  30, 2006  |    | June                  30, 2005 |   |
|                                                           |   |                                 |    | %                  of   |   |   |   | %                  of |   |
|                                                           |   | Dollars                              |    | Net                  Sales  |   | Dollars |   | Net                  Sales |   |
| Net                  sales                                     |   | $                                    | 1,262.7 |   |   | 100.0 | % | $ | 1,235.3 |   |   | 100.0 | % |
| Cost                  of sales                                 |   |                                 | 972.6   |   |   | 77.0 |   |   | 952.1 |   |   | 77.1 |   |
| Gross                  profit                                  |   |                                 | 290.1   |   |   | 23.0 |   |   | 282.2 |   |   | 22.9 |   |
| Selling,                  general and administrative expenses  |   |                                 | 222.6   |   |   | 17.6 |   |   | 228.1 |   |   | 18.4 |   |
| Earnings                  from operations                      |   |                                 | 67.5    |   |   | 5.4 |   |   | 55.1 |   |   | 4.5 |   |
| Interest                  expense                              |   |                                 | 7.7     |   |   | 0.6 |   |   | 5.9 |   |   | 0.5 |   |
| Other                  income, net                             |   |                                 | 12.6    |   |   | 1.0 |   |   | 2.5 |   |   | 0.2 |   |
| Earnings                  before income tax expense            |   |                                 | 72.4    |   |   | 5.8 |   |   | 51.7 |   |   | 4.2 |   |
| Income                  tax expense                            |   |                                 | 25.2    |   |   | 2.0 |   |   | 17.3 |   |   | 1.4 |   |
| Net                  earnings                                  |   | $                                    | 47.2    |   |   | 3.8 | % | $ | 34.4 |   |   | 2.8 | % |
|  Net                  earnings per common share - diluted |   | $                                    | 0.96    |   |   | - |   | $ | 0.65 |   |   | - |   |
|                                                           |   |                                 |    |   |   |   |   |   |   |   |   |   |   |

----

----

|                                              |   | Three                Months Ended |       | Six                Months Ended |   |
|---------------------------------------------------|--------|-----------------------------------|------------|---------------------------------|--------|
|                                              |   | June                30,           |       | June                30,         |   |
|                                              |   | 2006                              |       | 2005                            |   | 2006 |   | 2005 |   |
|                                              |   |                              |       |                            |   |   |   |   |   |
| Net                earnings per common share:     |   |                              |       |                            |   |   |   |   |   |   |   |   |   |
| Basic                                             |   |                              | 0.35       |                            |   | 0.18 |   |   | 0.96 |   |   | 0.65 |   |
| Diluted                                           |   |                              | 0.35       |                            |   | 0.18 |   |   | 0.96 |   |   | 0.65 |   |
|                                              |   |                              |       |                            |   |   |   |   |   |   |   |   |   |
| Average                common shares outstanding: |   |                              |       |                            |   |   |   |   |   |   |   |   |   |
| Basic                                             |   |                              | 48,853,193 |                            |   | 52,684,127 |   |   | 49,185,858 |   |   | 52,946,529 |   |
| Diluted                                           |   |                              | 48,853,193 |                            |   | 52,822,030 |   |   | 49,185,858 |   |   | 53,151,658 |   |

**FINANCIAL      CONDITION**

| Revolving                credit facility (unsecured) |   | $      | 150.0 |   |
|------------------------------------------------------|--------|--------|-------|--------|
| 6.83%                Senior Notes                    |   |   | 150.0 |   |
| Other                                                |   |   | 0.8   |   |
|                                                 |   | $      | 300.8 |   |

----

----

|   | (a) | Our                chief executive officer and chief financial officer have concluded                that                our disclosure controls and procedures are effective based on their                evaluation of these controls and procedures as of the end of the                period                covered by this report. Notwithstanding the foregoing, there can                be no                assurance that our disclosure controls and procedures will detect                or                uncover all failures of persons within the Company and its consolidated                subsidiaries to disclose material information otherwise required                to be set                forth in our report. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | No                change in our internal control over financial reporting has occurred                during the most recent fiscal quarter that has materially affected,                or is                reasonably likely to materially affect, our internal control over                financial reporting. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**ISSUER      PURCHASES OF EQUITY SECURITIES**

|                              |   |                     |      |    |   | Total                Number     |   |                              |                       |
|-----------------------------------|--------|--------------------------|-----------|---------|--------|---------------------------------|--------|-----------------------------------|----------------------------|
|                              |   |                     |      |    |   | of                Shares        |   | Approximate                Dollar |                       |
|                              |   |                     |      |    |   | Purchased                as     |   | Value                of Shares    |                       |
|                              |   | Total                    |      | Average |   | Part                of Publicly |   | that                May Yet       |                       |
|                              |   | Number                   |      | Price   |   | Announced                       |   | Be                Purchased       |                       |
|                              |   | Of                Shares |      | Paid    |   | Plans                           |   | Under                the Plans    |                       |
| Period                            |   |                     | Purchased |    |   | per                Share        |   |                              | or                Programs |   |   | or                Programs |   |
|                              |   |                     |      |    |   |                            |   |                              |                       |   |   |   |   |
| April                1 - April 30 |   |                     | -         |    |   | -                               |   |                              | -                          |   | $ | 72,258,170 |   |
|                              |   |                     |      |    |   |                            |   |                              |                       |   |   |   |   |
| May                1 - May 31     |   |                     | 143,000   |    | $      | 22.03                           |   |                              | 143,000                    |   | $ | 69,108,408 |   |
|                              |   |                     |      |    |   |                            |   |                              |                       |   |   |   |   |
| June                1 - June 30   |   |                     | 569,478   |    |   | 20.94                           |   |                              | 569,478                    |   | $ | 57,183,082 |   |
|                              |   |                     |      |    |   |                            |   |                              |                       |   |   |   |   |
| Total                             |   |                     | 712,478   |    | $      | 21.16                           |   |                              | 712,478                    |   |   |   |   |

----

| Director                         |   |   | For        |   |   | Withheld  |   |
|----------------------------------|--------|--------|------------|--------|--------|-----------|--------|
|                             |   |   |       |   |   |      |   |
| K.                B. Bell        |   |   | 45,955,819 |   |   | 90,371    |   |
| J.                T. Foy         |   |   | 45,806,195 |   |   | 239,995   |   |
| W.                G. Holliman    |   |   | 45,806,084 |   |   | 240,106   |   |
| J.                R. Jordan, Jr. |   |   | 45,954,245 |   |   | 91,945    |   |
| D.                E. Lasater     |   |   | 45,739,142 |   |   | 307,048   |   |
| L.                M. Liberman    |   |   | 45,740,112 |   |   | 306,078   |   |
| R.                B. Loynd       |   |   | 45,619,710 |   |   | 426,480   |   |
| B.                L. Martin      |   |   | 45,689,770 |   |   | 356,420   |   |
| A.                B. Patterson   |   |   | 44,385,678 |   |   | 1,660,512 |   |
| A.                E. Suter       |   |   | 45,928,886 |   |   | 117,304   |   |

| Affirmative                  votes |   |   | 45,919,964 |   |
|------------------------------------|--------|--------|------------|--------|
| Negative                  votes    |   |   | 112,103    |   |
| Abstentions                        |   |   | 14,123     |   |
| Broker                  non-votes  |   |   | 0          |   |

|   | 31     |   | Certifications                of W. G. Holliman, Chief Executive Officer of the Company and Denise                L.                Ramos, Chief Financial Officer of the Company, Pursuant to Rule                13a-14(a)/15d-14(a), as Adopted Pursuant to Section 302 of the                Sarbanes-Oxley Act of 2002.              |
|--------|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |                                                                                                                                                                                                                                                                                                                                      |
|   | 32     |   | Certifications                of W. G. Holliman, Chief Executive Officer of the Company and Denise                L.                Ramos, Chief Financial Officer of the Company, Pursuant to 18 U.S.C.                Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley                Act                of 2002. |
|   |   |   |                                                                                                                                                                                                                                                                                                                                      |
|   |   |   |                                                                                                                                                                                                                                                                                                                                      |
|   |   |   |                                                                                                                                                                                                                                                                                                                                      |
|   |   |   |                                                                                                                                                                                                                                                                                                                                      |
|   |   |   |                                                                                                                                                                                                                                                                                                                                      |

----

|   | Furniture                Brands International, Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (Registrant)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | By                /s/                Steven W.                Alstadt                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | Steven                W. Alstadt                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   | Controller                and                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | Chief                Accounting Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

| Exhibit                No. |   | Description                                                                                                                                                                                                                                                                                                                               |
|----------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                       |   |                                                                                                                                                                                                                                                                                                                                      |
| 31                         |   | Certifications                of W. G. Holliman, Chief Executive Officer of the Company and Denise                L.                Ramos, Chief Financial Officer of the Company, Pursuant to Rule                13a-14(a)/15d-14(a), as Adopted Pursuant to Section 302 of the                Sarbanes-Oxley Act of 2002.              |
|                       |   |                                                                                                                                                                                                                                                                                                                                      |
| 32                         |   | Certifications                of W. G. Holliman, Chief Executive Officer of the Company and Denise                L.                Ramos, Chief Financial Officer of the Company, Pursuant to 18 U.S.C.                Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley                Act                of 2002. |
|                       |   |                                                                                                                                                                                                                                                                                                                                      |