|   | (Mark                one)                                                                                                              |
|--------|----------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                   |
| (X)    | QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE                ACT OF                1934  |
|   | For                the quarterly period ended September                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 September 30,                2006. |
|                                                                                                      |
| Consolidated                Balance Sheets:                                                               |
|                                                                                                      |
| September                30, 2006                                                                         |
| December                31, 2005                                                                          |
|                                                                                                      |
| Consolidated                Statements of Operations:                                                     |
|                                                                                                      |
| Three                Months Ended September 30, 2006                                                      |
| Three                Months Ended September 30, 2005                                                      |
| Nine                Months Ended September 30, 2006                                                       |
| Nine                Months Ended September 30, 2005                                                       |
|                                                                                                      |
|                                                                                                      |
| Consolidated                Statements of Cash Flows:                                                     |
|                                                                                                      |
| Nine                Months Ended September 30, 2006                                                       |
| Nine                Months Ended September 30, 2005                                                       |
|                                                                                                      |
| Notes                to Consolidated Financial Statements                                                 |
|                                                                                                      |

----

|                                                                                  |   | September                30, |      | December                31, |   |
|---------------------------------------------------------------------------------------|--------|------------------------------|-----------|-----------------------------|--------|
|                                                                                  |   |                         | 2006      |                        |   | 2005 |   |
| ASSETS                                                                                |   |                         |      |                        |   |   |   |
|                                                                                  |   |                         |      |                        |   |   |   |
| Current                assets:                                                        |   |                         |      |                        |   |   |   |
| Cash                and cash equivalents                                              |   | $                            | 41,610    |                        | $      | 114,322 |   |
| Receivables,                less allowances of $24,553 ($23,368 at December 31, 2005) |   |                         | 360,206   |                        |   | 349,202 |   |
| Inventories                (Note 1)                                                   |   |                         | 516,837   |                        |   | 432,814 |   |
| Deferred                income taxes                                                  |   |                         | 27,383    |                        |   | 25,540 |   |
| Prepaid                expenses and other current assets                              |   |                         | 19,870    |                        |   | 9,790 |   |
| Total                current assets                                                   |   |                         | 965,906   |                        |   | 931,668 |   |
|                                                                                  |   |                         |      |                        |   |   |   |
| Property,                plant and equipment                                          |   |                         | 638,931   |                        |   | 666,079 |   |
| Less                accumulated depreciation                                          |   |                         | 408,509   |                        |   | 415,262 |   |
| Net                property, plant and equipment                                      |   |                         | 230,422   |                        |   | 250,817 |   |
|                                                                                  |   |                         |      |                        |   |   |   |
| Goodwill                                                                              |   |                         | 182,507   |                        |   | 182,507 |   |
| Other                intangible assets                                                |   |                         | 169,671   |                        |   | 169,671 |   |
| Other                assets                                                           |   |                         | 44,120    |                        |   | 47,561 |   |
|                                                                                  |   | $                            | 1,592,626 |                        | $      | 1,582,224 |   |
|                                                                                  |   |                         |      |                        |   |   |   |
| LIABILITIES                AND SHAREHOLDERS' EQUITY                                   |   |                         |      |                        |   |   |   |
|                                                                                  |   |                         |      |                        |   |   |   |
| Current                liabilities:                                                   |   |                         |      |                        |   |   |   |
| Accounts                payable                                                       |   | $                            | 111,600   |                        | $      | 101,860 |   |
| Accrued                employee compensation                                          |   |                         | 34,324    |                        |   | 30,605 |   |
| Other                current liabilities                                              |   |                         | 71,844    |                        |   | 81,020 |   |
| Total                current liabilities                                              |   |                         | 217,768   |                        |   | 213,485 |   |
|                                                                                  |   |                         |      |                        |   |   |   |
| Long-term                debt                                                         |   |                         | 300,800   |                        |   | 301,600 |   |
| Deferred                income taxes                                                  |   |                         | 42,953    |                        |   | 60,668 |   |
| Other                long-term liabilities                                            |   |                         | 129,230   |                        |   | 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 September 30, 2006 and December 31, 2005                     |   |                         | 56,483    |                        |   | 56,483 |   |
| Paid-in                capital                                                        |   |                         | 226,274   |                        |   | 221,754 |   |
| Retained                earnings                                                      |   |                         | 849,486   |                        |   | 820,025 |   |
| Accumulated                other comprehensive income (expense) (Note 3)         |   |                         | (46,175   | )                           |   | (41,382 | ) |
| Treasury                stock at cost (8,158,789 shares at                            |   |                         |      |                        |   |   |   |
| September                30, 2006 and 6,814,963 shares at                             |   |                         |      |                        |   |   |   |
| December                31, 2005)                                                     |   |                         | (184,193  | )                           |   | (152,928 | ) |
| Total                shareholders' equity                                             |   |                         | 901,875   |                        |   | 903,952 |   |
|                                                                                  |   | $                            | 1,592,626 |                        | $      | 1,582,224 |   |

----

|                                                                |   | Three                Months  |       | Three                Months  |   |
|---------------------------------------------------------------------|--------|------------------------------|------------|------------------------------|--------|
|                                                                |   | Ended                        |       | Ended                        |   |
|                                                                |   | September                30, |       | September                30, |   |
|                                                                |   | 2006                         |       | 2005                         |   |
|                                                                |   |                         |       |                         |   |
| Net                sales                                            |   | $                            | 568,917    |                         | $      | 557,927 |   |
|                                                                |   |                         |       |                         |   |   |   |
| Cost                of sales                                        |   |                         | 446,150    |                         |   | 438,149 |   |
|                                                                |   |                         |       |                         |   |   |   |
| Gross                profit                                         |   |                         | 122,767    |                         |   | 119,778 |   |
|                                                                |   |                         |       |                         |   |   |   |
| Selling,                general and administrative expenses         |   |                         | 109,788    |                         |   | 102,969 |   |
|                                                                |   |                         |       |                         |   |   |   |
| Earnings                from operations                             |   |                         | 12,979     |                         |   | 16,809 |   |
|                                                                |   |                         |       |                         |   |   |   |
| Interest                expense                                     |   |                         | 4,902      |                         |   | 3,146 |   |
|                                                                |   |                         |       |                         |   |   |   |
| Other                income, net                                    |   |                         | 870        |                         |   | 903 |   |
|                                                                |   |                         |       |                         |   |   |   |
| Earnings                before income tax expense                   |   |                         | 8,947      |                         |   | 14,566 |   |
|                                                                |   |                         |       |                         |   |   |   |
| Income                tax expense                                   |   |                         | 3,150      |                         |   | 4,647 |   |
|                                                                |   |                         |       |                         |   |   |   |
| Net                earnings                                         |   | $                            | 5,797      |                         | $      | 9,919 |   |
|                                                                |   |                         |       |                         |   |   |   |
| Net                earnings per common share:                       |   |                         |       |                         |   |   |   |
|                                                                |   |                         |       |                         |   |   |   |
| Basic                                                               |   | $                            | 0.12       |                         | $      | 0.19 |   |
|                                                                |   |                         |       |                         |   |   |   |
| Diluted                                                             |   | $                            | 0.12       |                         | $      | 0.19 |   |
|                                                                |   |                         |       |                         |   |   |   |
| Weighted                average common shares outstanding (Note 2): |   |                         |       |                         |   |   |   |
|                                                                |   |                         |       |                         |   |   |   |
|                                                                |   |                         |       |                         |   |   |   |
| Basic                                                               |   |                         | 48,320,622 |                         |   | 51,616,863 |   |
|                                                                |   |                         |       |                         |   |   |   |
| Diluted                                                             |   |                         | 48,320,622 |                         |   | 51,707,929 |   |
|                                                                |   |                         |       |                         |   |   |   |

----

|                                                                |   | Nine                Months   |       | Nine                Months   |   |
|---------------------------------------------------------------------|--------|------------------------------|------------|------------------------------|--------|
|                                                                |   | Ended                        |       | Ended                        |   |
|                                                                |   | September                30, |       | September                30, |   |
|                                                                |   | 2006                         |       | 2005                         |   |
|                                                                |   |                         |       |                         |   |
| Net                sales                                            |   | $                            | 1,831,637  |                         | $      | 1,793,245 |   |
|                                                                |   |                         |       |                         |   |   |   |
| Cost                of sales                                        |   |                         | 1,418,776  |                         |   | 1,390,234 |   |
|                                                                |   |                         |       |                         |   |   |   |
| Gross                profit                                         |   |                         | 412,861    |                         |   | 403,011 |   |
|                                                                |   |                         |       |                         |   |   |   |
| Selling,                general and administrative expenses         |   |                         | 332,372    |                         |   | 331,055 |   |
|                                                                |   |                         |       |                         |   |   |   |
| Earnings                from operations                             |   |                         | 80,489     |                         |   | 71,956 |   |
|                                                                |   |                         |       |                         |   |   |   |
| Interest                expense                                     |   |                         | 12,590     |                         |   | 9,094 |   |
|                                                                |   |                         |       |                         |   |   |   |
| Other                income, net (Note 7)                           |   |                         | 13,448     |                         |   | 3,437 |   |
|                                                                |   |                         |       |                         |   |   |   |
| Earnings                before income tax expense                   |   |                         | 81,347     |                         |   | 66,299 |   |
|                                                                |   |                         |       |                         |   |   |   |
| Income                tax expense                                   |   |                         | 28,350     |                         |   | 22,005 |   |
|                                                                |   |                         |       |                         |   |   |   |
| Net                earnings                                         |   | $                            | 52,997     |                         | $      | 44,294 |   |
|                                                                |   |                         |       |                         |   |   |   |
| Net                earnings per common share:                       |   |                         |       |                         |   |   |   |
|                                                                |   |                         |       |                         |   |   |   |
| Basic                                                               |   | $                            | 1.08       |                         | $      | 0.84 |   |
|                                                                |   |                         |       |                         |   |   |   |
| Diluted                                                             |   | $                            | 1.08       |                         | $      | 0.84 |   |
|                                                                |   |                         |       |                         |   |   |   |
| Weighted                average common shares outstanding (Note 2): |   |                         |       |                         |   |   |   |
|                                                                |   |                         |       |                         |   |   |   |
|                                                                |   |                         |       |                         |   |   |   |
| Basic                                                               |   |                         | 48,894,276 |                         |   | 52,498,436 |   |
|                                                                |   |                         |       |                         |   |   |   |
| Diluted                                                             |   |                         | 48,894,276 |                         |   | 52,653,801 |   |
|                                                                |   |                         |       |                         |   |   |   |

----

|                                                                                                          |   | Nine                Months             |     | Nine                Months         |   |
|---------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|----------|------------------------------------|--------|
|                                                                                                          |   | Ended                                  |     | Ended                              |   |
|                                                                                                          |   |  September              30,  |     |  September                30, |   |
|                                                                                                          |   |  2006                             |     |  2005                         |   |
|                                                                                                          |   |                              |     |                          |   |
| Cash                flows from operating activities:                                                          |   |                                   |     |                               |   |   |   |
| Net                earnings                                                                                   |   | $                                      | 52,997   |                               | $      | 44,294 |   |
| Adjustments                to reconcile net earnings to net cash                                              |   |                                   |     |                               |   |   |   |
| provided                by operating activities:                                                              |   |                                   |     |                               |   |   |   |
| Depreciation                and amortization                                                                  |   |                                   | 28,272   |                               |   | 34,755 |   |
| Compensation                expense related to stock option grants and restricted stock                awards |   |                                   | 4,708    |                               |   | 150 |   |
| Provision                (benefit) for deferred income taxes                                                  |   |                                   | (11,226  | )                                  |   | (4,528 | ) |
| Other,                net                                                                                     |   |                                   | (2,755   | )                                  |   | 11,031 |   |
| Changes                in operating assets and liabilities:                                                   |   |                                   |     |                               |   |   |   |
| Accounts                receivable                                                                            |   |                                   | (11,004  | )                                  |   | 31,231 |   |
| Inventories                                                                                                   |   |                                   | (84,023  | )                                  |   | 10,014 |   |
| Prepaid                expenses and other assets                                                              |   |                                   | (6,031   | )                                  |   | (13,433 | ) |
| Accounts                payable and other accrued expenses                                                    |   |                                   | 6,524    |                               |   | 24,878 |   |
| Other                long-term liabilities                                                                    |   |                                   | 12,893   |                               |   | 14,800 |   |
| Net                cash provided (used) by operating activities                                               |   |                                   | (9,645   | )                                  |   | 153,192 |   |
|                                                                                                          |   |                                   |     |                               |   |   |   |
| Cash                flows from investing activities:                                                          |   |                                   |     |                               |   |   |   |
| Proceeds                from the disposal of assets                                                           |   |                                   | 4,957    |                               |   | 4,261 |   |
| Additions                to property, plant and equipment                                                     |   |                                   | (19,646  | )                                  |   | (21,186 | ) |
| Net                cash used by investing activities                                                          |   |                                   | (14,689  | )                                  |   | (16,925 | ) |
|                                                                                                          |   |                                   |     |                               |   |   |   |
| Cash                flows from financing activities:                                                          |   |                                   |     |                               |   |   |   |
| Proceeds                from termination of cash flow hedges                                                  |   |                                   | 8,623    |                               |   | - |   |
| Payments                for debt issuance costs                                                               |   |                                   | (1,212   | )                                  |   | - |   |
| Additions                to long-term debt                                                                    |   |                                   | 450,000  |                               |   | - |   |
| Payments                of long-term debt                                                                     |   |                                   | (450,800 | )                                  |   | (800 | ) |
| Proceeds                from the exercise of stock options                                                    |   |                                   | 8,095    |                               |   | 7,445 |   |
| Tax                benefit from the exercise of stock options                                                 |   |                                   | 527      |                               |   | - |   |
| Payments                of cash dividends                                                                     |   |                                   | (23,536  | )                                  |   | (23,649 | ) |
| Payments                for the purchase of treasury stock                                                    |   |                                   | (40,075  | )                                  |   | (52,022 | ) |
| Net                cash used by financing activities                                                          |   |                                   | (48,378  | )                                  |   | (69,026 | ) |
|                                                                                                          |   |                                   |     |                               |   |   |   |
| Net                increase (decrease) in cash and cash equivalents                                           |   |                                   | (72,712  | )                                  |   | 67,241 |   |
| Cash                and cash equivalents at beginning of period                                               |   |                                   | 114,322  |                               |   | 51,248 |   |
| Cash                and cash equivalents at end of period                                                     |   | $                                      | 41,610   |                               | $      | 118,489 |   |
|                                                                                                          |   |                                   |     |                               |   |   |   |
| Supplemental                disclosure:                                                                       |   |                                   |     |                               |   |   |   |
|                                                                                                          |   |                                   |     |                               |   |   |   |
| Cash                payments for income taxes, net                                                            |   | $                                      | 50,370   |                               | $      | 32,815 |   |
|                                                                                                          |   |                                   |     |                               |   |   |   |
| Cash                payments for interest expense                                                             |   | $                                      | 7,879    |                               | $      | 9,232 |   |
|                                                                                                          |   |                                   |     |                               |   |   |   |

----

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

|                             |   | September                30, |    | December                31, |   |
|----------------------------------|--------|------------------------------|---------|-----------------------------|--------|
|                             |   | 2006                         |    | 2005                        |   |
|                             |   |                         |    |                        |   |
| Finished                products |   | $                            | 364,201 |                        | $      | 275,985 |   |
| Work-in-process                  |   |                         | 39,542  |                        |   | 43,747 |   |
| Raw                materials     |   |                         | 113,094 |                        |   | 113,082 |   |
|                             |   | $                            | 516,837 |                        | $      | 432,814 |   |

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

|                                          |   | Three                Months Ended September 30, |       | Nine                Months Ended September 30, |   |
|-----------------------------------------------|--------|-------------------------------------------------|------------|------------------------------------------------|--------|
|                                          |   | 2006                                            |       | 2005                                           |   | 2006 |   | 2005 |   |
| Weighted                average shares used   |   |                                            |       |                                           |   |   |   |   |   |   |   |   |   |
| for                basic net earnings per     |   |                                            |       |                                           |   |   |   |   |   |   |   |   |   |
| common                share                   |   |                                            | 48,320,622 |                                           |   | 51,616,863 |   |   | 48,894,276 |   |   | 52,498,436 |   |
| Effect                of dilutive securities: |   |                                            |       |                                           |   |   |   |   |   |   |   |   |   |
| Stock                options                  |   |                                            | -          |                                           |   | 91,066 |   |   | - |   |   | 155,365 |   |
| Weighted                average shares used   |   |                                            |       |                                           |   |   |   |   |   |   |   |   |   |
| for                diluted net earnings       |   |                                            |       |                                           |   |   |   |   |   |   |   |   |   |
| per                common share               |   |                                            | 48,320,622 |                                           |   | 51,707,929 |   |   | 48,894,276 |   |   | 52,653,801 |   |

|                                  |   | Three                Months Ended September 30, |      | Nine                Months Ended September 30, |   |
|---------------------------------------|--------|-------------------------------------------------|-----------|------------------------------------------------|--------|
|                                  |   | 2006                                            |      | 2005                                           |   | 2006 |   | 2005 |   |
|                                  |   |                                            |      |                                           |   |   |   |   |   |
| Stock                options          |   |                                            | 3,431,175 |                                           |   | 3,506,850 |   |   | 2,880,125 |   |   | 3,463,850 |   |
| Average                exercise price |   | $                                               | 25.43     |                                           | $      | 25.23 |   | $ | 26.19 |   | $ | 25.28 |   |

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

|                                                                   |   | Nine                Months   |   | Nine                Months   |   |
|------------------------------------------------------------------------|--------|------------------------------|--------|------------------------------|--------|
|                                                                   |   | Ended                        |   | Ended                        |   |
|                                                                   |   | September                30, |   | September                30, |   |
|                                                                   |   | 2006                         |   | 2005                         |   |
|                                                                   |   |                         |   |                         |   |
| Net                earnings                                            |   | $                            | 52,997 |                         | $      | 44,294 |   |
| Other                comprehensive income (expense), net of tax:       |   |                         |   |                         |   |   |   |
| Change                in fair value of financial instruments accounted |   |                         |   |                         |   |   |   |
| for                as hedges                                           |   |                         | (5,663 | )                            |   | 1,834 |   |
| Foreign                currency translation                            |   |                         | 870    |                         |   | (166 | ) |
| Other                comprehensive income (expense)                    |   |                         | (4,793 | )                            |   | 1,668 |   |
|                                                                   |   | $                            | 48,204 |                         | $      | 45,962 |   |

----

|                                                         |   | September                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                  |   |                         | 433     |                        |   | (437 | ) |
|                                                         |   | $                            | (46,175 | )                           | $      | (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                            |   | Nine                             |   |
|--------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|--------|---------------------------------------|--------|
|                                                                                                                     |   | Months                           |   | Months                           |   |
|                                                                                                                     |   | Ended                            |   | Ended                            |   |
|                                                                                                                     |   | September                    30, 2005 |   | September                    30, 2005 |   |
|                                                                                                                     |   |                                  |   |                                  |   |
| Net                    earnings                                                                                          |   | $                                     | 9,919  |                                  | $      | 44,294 |   |
|                                                                                                                     |   |                                  |   |                                  |   |   |   |
| Deduct:                    Stock-based employee compensationexpense                    determined under fair value based |   |                                  |   |                                  |   |   |   |
| method,                    net of income tax benefits                                                                    |   |                                  | (1,135 | )                                     |   | (3,355 | ) |
|                                                                                                                     |   |                                  |   |                                  |   |   |   |
| Net                    earnings - pro forma                                                                              |   | $                                     | 8,784  |                                  | $      | 40,939 |   |
|                                                                                                                     |   |                                  |   |                                  |   |   |   |
| Earnings                    per share - basic:                                                                           |   |                                  |   |                                  |   |   |   |
| As                    reported                                                                                           |   | $                                     | 0.19   |                                  | $      | 0.84 |   |
| Pro                    forma                                                                                             |   | $                                     | 0.17   |                                  | $      | 0.78 |   |
|                                                                                                                     |   |                                  |   |                                  |   |   |   |
| Earnings                    per share - diluted:                                                                         |   |                                  |   |                                  |   |   |   |
| As                    reported                                                                                           |   | $                                     | 0.19   |                                  | $      | 0.84 |   |
| Pro                    forma                                                                                             |   | $                                     | 0.17   |                                  | $      | 0.78 |   |

----

|                                                   |   |   |      |     |   | 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                                                |   |   | 682,800   |     |   | 24.01                       |   |      |   |   |   |   |   |
| Exercised                                              |   |   | (395,625  | )        |   | 20.46                       |   |      |   |   |   |   |   |
| Cancelled                                              |   |   | (280,900  | )        |   | 24.15                       |   |      |   |   |   |   |   |
| Outstanding                at September 30, 2006       |   |   | 3,922,625 |     | $      | 24.22                       |   |      | 5.6    |   | $ | 1,118 |   |
|  Exercisable                at September 30, 2006 |   |   | 2,549,800 |     | $      | 24.30                       |   |      | 4.1    |   | $ | 1,075 |   |

|                                   |   | 2006   |   | 2005   |   |
|----------------------------------------|--------|--------|--------|--------|--------|
|                                   |   |   |   |   |   |
| Risk-free                interest rate |   |   | 4.42   | %      |   | 3.77 | % |
| Expected                dividend yield |   |   | 2.45   | %      |   | 2.62 | % |
| Expected                term (years)   |   |   | 5.6    |   |   | 6.0 |   |
| Expected                volatility     |   |   | 39.91  | %      |   | 42.61 | % |
|                                   |   |   |   |   |   |   |   |

|                                                 |   | Three                Months Ended |   | Nine                Months Ended |   |
|------------------------------------------------------|--------|-----------------------------------|--------|----------------------------------|--------|
|                                                 |   | September                30,      |   | September                30,     |   | September                30, |   | September                30, |   |
|                                                 |   | 2006                              |   | 2005                             |   | 2006 |   | 2005 |   |
|                                                 |   |                              |   |                             |   |   |   |   |   |
| Weighted                average fair value per share |   |                              |   |                             |   |   |   |   |   |   |   |   |   |
| of                options granted                    |   | $                                 | 6.35   |                             | $      | 6.45 |   | $ | 8.54 |   | $ | 8.26 |   |
|                                                 |   |                              |   |                             |   |   |   |   |   |   |   |   |   |
| Total                intrinsic value of              |   |                              |   |                             |   |   |   |   |   |   |   |   |   |
| stock                options exercised               |   | $                                 | -      |                             | $      | 1,338 |   | $ | 1,392 |   | $ | 4,060 |   |

----

|                                                    |   | Shares |    |
|---------------------------------------------------------|--------|--------|---------|
| Non-vested                balance at December 31, 2005  |   |   | 52,166  |   |
| Granted                                                 |   |   | 60,190  |   |
| Vested                                                  |   |   | (13,334 | ) |
| Forfeited                                               |   |   | (14,941 | ) |
| Non-vested                balance at September 30, 2006 |   |   | 84,081  |   |

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

|                                          |   | Nine                Months Ended   |    |
|-----------------------------------------------|--------|------------------------------------|---------|
|                                          |   | September                30, 2006, |    | September                30, 2005 |   |
|                                          |   |                               |    |   |   |
| Service                cost                   |   | $                                  | 4,091   |   | $ | 10,200 |   |
| Interest                cost                  |   |                               | 18,425  |   |   | 19,275 |   |
| Expected                return on plan assets |   |                               | (19,124 | ) |   | (19,500 | ) |
| Net                amortization and deferral  |   |                               | 5,504   |   |   | 4,727 |   |
|                                          |   | $                                  | 8,896   |   | $ | 14,702 |   |

| (6) | We                  have provided guarantees related to store leases for certain independent                  dealers opening Company-branded stores (e.g., Thomasville HomeFurnishings                  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 September                  30, 2006                  were $85,976. We consider the estimated loss on these guarantees                  to be                  insignificant; therefore, as of September 30, 2006 we have not                  recorded                  any contingent liability for lease                  guarantees. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Long-term                debt as of September 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 consist of the                following: |
|-----|-------------------------------------------------------------------------------------|

|                             |   | September                30, 2006 |    | December                31, 2005 |   |
|----------------------------------|--------|-----------------------------------|---------|----------------------------------|--------|
|                             |   |                              |    |                             |   |
| Pension                Liability |   | $                                 | 79,560  |                             | $      | 72,678 |   |
| Other                            |   |                              | 49,670  |                             |   | 29,841 |   |
|                             |   | $                                 | 129,230 |                             | $      | 102,519 |   |

| (9) | In                  September 2006, Thomasville received an unfavorable judgment in                  a                  litigation matter originating over ten years ago. This matter has                  had                  several favorable and unfavorable judgments over the years and                  we will                  continue to aggressively defend ourselves in this case. However,                  based                  upon legal advice and our current evaluation of the case we have                  recorded                  a charge of $1,300 in the three month period ended September 30,                  2006. If                  we are unsuccessful in defending our position in this case we could                  be                  potentially liable for an additional $3,500. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**RESULTS      OF OPERATIONS**

|                                                           |   | Three                  Months Ended       |                                     |
|----------------------------------------------------------------|--------|-------------------------------------------|------------------------------------------|
|                                                           |   | September                  30, 2006  |                      | September                  30, 2005 |   |
|                                                           |   |                                      |                                     | %                  of  |   |   |   | %                  of |   |
|                                                           |   | Dollars                                   |                                     | Net                  Sales  |   | Dollars |   | Net                  Sales |   |
| Net                  sales                                     |   | $                                         | 568.9                                    |   |   | 100.0 | % | $ | 557.9 |   |   | 100.0 | % |
| Cost                  of sales                                 |   |                                      | 446.1                                    |   |   | 78.4 |   |   | 438.1 |   |   | 78.5 |   |
| Gross                  profit                                  |   |                                      | 122.8                                    |   |   | 21.6 |   |   | 119.8 |   |   | 21.5 |   |
| Selling,                  general and administrative expenses  |   |                                      | 109.8                                    |   |   | 19.3 |   |   | 103.0 |   |   | 18.5 |   |
| Earnings                  from operations                      |   |                                      | 13.0                                     |   |   | 2.3 |   |   | 16.8 |   |   | 3.0 |   |
| Interest                  expense                              |   |                                      | 4.9                                      |   |   | 0.8 |   |   | 3.1 |   |   | 0.6 |   |
| Other                  income, net                             |   |                                      | 0.8                                      |   |   | 0.1 |   |   | 0.9 |   |   | 0.2 |   |
| Earnings                  before income tax expense            |   |                                      | 8.9                                      |   |   | 1.6 |   |   | 14.6 |   |   | 2.6 |   |
| Income                  tax expense                            |   |                                      | 3.1                                      |   |   | 0.6 |   |   | 4.7 |   |   | 0.8 |   |
| Net                  earnings                                  |   | $                                         | 5.8                                      |   |   | 1.0 | % | $ | 9.9 |   |   | 1.8 | % |
|  Net                  earnings per common share - diluted |   | $                                         | 0.12                                     |   |   | - |   | $ | 0.19 |   |   | - |   |

|                                                         |   | Nine                Months Ended        |    |
|--------------------------------------------------------------|--------|-----------------------------------------|---------|
|                                                         |   | September                30, 2006  |    | September                30, 2005 |   |
|                                                         |   |                                    |    | %                of  |   |   |   | %                of |   |
|                                                         |   | Dollars                                 |    | Net                Sales  |   | Dollars |   | Net                Sales |   |
| Net                sales                                     |   | $                                       | 1,831.6 |   |   | 100.0 | % | $ | 1,793.2 |   |   | 100.0 | % |
| Cost                of sales                                 |   |                                    | 1,418.7 |   |   | 77.5 |   |   | 1,390.2 |   |   | 77.5 |   |
| Gross                profit                                  |   |                                    | 412.9   |   |   | 22.5 |   |   | 403.0 |   |   | 22.5 |   |
| Selling,                general and administrative expenses  |   |                                    | 332.4   |   |   | 18.1 |   |   | 331.0 |   |   | 18.5 |   |
| Earnings                from operations                      |   |                                    | 80.5    |   |   | 4.4 |   |   | 72.0 |   |   | 4.0 |   |
| Interest                expense                              |   |                                    | 12.6    |   |   | 0.7 |   |   | 9.1 |   |   | 0.5 |   |
| Other                income, net                             |   |                                    | 13.4    |   |   | 0.7 |   |   | 3.4 |   |   | 0.2 |   |
| Earnings                before income tax expense            |   |                                    | 81.3    |   |   | 4.4 |   |   | 66.3 |   |   | 3.7 |   |
| Income                tax expense                            |   |                                    | 28.3    |   |   | 1.5 |   |   | 22.0 |   |   | 1.2 |   |
| Net                earnings                                  |   | $                                       | 53.0    |   |   | 2.9 | % | $ | 44.3 |   |   | 2.5 | % |
|  Net                earnings per common share - diluted |   | $                                       | 1.08    |   |   | - |   | $ | 0.84 |   |   | - |   |
|                                                         |   |                                    |    |   |   |   |   |   |   |   |   |   |   |

----

----

|                                              |   | Three                Months Ended |       | Nine                Months Ended |   |
|---------------------------------------------------|--------|-----------------------------------|------------|----------------------------------|--------|
|                                              |   | September                30,      |       | September                30,     |   |
|                                              |   | 2006                              |       | 2005                             |   | 2006 |   | 2005 |   |
|                                              |   |                              |       |                             |   |   |   |   |   |
| Net                earnings per common share:     |   |                              |       |                             |   |   |   |   |   |   |   |   |   |
| Basic                                             |   |                              | 0.12       |                             |   | 0.19 |   |   | 1.08 |   |   | 0.84 |   |
| Diluted                                           |   |                              | 0.12       |                             |   | 0.19 |   |   | 1.08 |   |   | 0.84 |   |
|                                              |   |                              |       |                             |   |   |   |   |   |   |   |   |   |
| Average                common shares outstanding: |   |                              |       |                             |   |   |   |   |   |   |   |   |   |
| Basic                                             |   |                              | 48,320,622 |                             |   | 51,616,863 |   |   | 48,894,276 |   |   | 52,498,436 |   |
| Diluted                                           |   |                              | 48,320,622 |                             |   | 51,707,929 |   |   | 48,894,276 |   |   | 52,653,801 |   |

**FINANCIAL      CONDITION**

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

----

| -   | Recognize                the funded status of a benefit plan in its statement of financial                position. |
|---------------|---------------------------------------------------------------------------------------------------------------------|

| -   | Recognize                as a component of other comprehensive income the actuarial gains                and                losses and the prior service costs or credits that arise during the                period                but are not recognized as components of net periodic benefit                costs. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | (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. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 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. |
|                       |   |                                                                                                                                                                                                                                                                                                                                      |