FORM 10-Q
                        SECURITIES AND EXCHANGE COMMISSION
                               Washington, DC 20549

           [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                For the quarterly period ended September 27, 1998

           [] 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 1-10542

                                   UNIFI, INC.
               (Exact name of registrant as specified its charter)

          New York                                      11-2165495
  (State or other jurisdiction of                   (I.R.S.Employer
   incorporation or organization)                    Identification No.)

  P.O. Box 19109 - 7201 West Friendly Avenue
  Greensboro, NC                                              27419
  (Address of principal executive offices)                  (Zip Code)

                                  (336) 294-4410
               (Registrant's telephone number, including area code)
                                       Same
               (Former name, former address and former fiscal year,
                          if changed since last report)

  Indicate by check mark whether the registrant (1) has filed all reports
  required to be filed by Section 13 or 15(d) of the Securities Exchange Act
  of 1934 during the preceding 12 months (or for such shorter period that the
  registrant was required to file such reports), and (2) has been subject to
  such filing requirements for the past 90 days.  Yes  X    No

                     APPLICABLE ONLY TO CORPORATE ISSUERS:

 Indicate the number of shares outstanding of each of the issuer's class of
 common stock, as of the latest practicable date.
                Class                        Outstanding at November 1,1998
  Common Stock, par value $.10 per share              61,075,386 Shares



  Part I.  Financial Information

                                   UNIFI, INC.
                      Condensed Consolidated Balance Sheets

                                          September 27,    June 28,
                                              1998           1998
                                           (Unaudited)      (Note)
                                             (Amounts in Thousands)
  ASSETS:
  Current assets:
    Cash and cash equivalents                  $17,612       $8,372
    Receivables                                200,343      222,310
    Inventories:
      Raw materials and supplies                51,444       45,044
      Work in process                           15,573       14,800
      Finished goods                            77,935       77,357
    Other current assets                         1,975        1,308
      Total current assets                     364,882      369,191
  Property, plant and equipment              1,191,988    1,145,622
    Less:  accumulated depreciation            517,870      497,042
                                               674,118      648,580
  Equity investments in                        212,691      212,448
   unconsolidated affiliates
  Other noncurrent assets                      100,154      108,585
      Total assets                          $1,351,845   $1,338,804

  LIABILITIES AND SHAREHOLDERS' EQUITY:
  Current liabilities:
    Accounts payable                           $81,315      $93,922
    Accrued expenses                            32,618       43,939
    Income taxes payable                         9,585        5,218
    Current  maturities of long-term
     debt and other current liabilities         16,231       16,234
      Total current liabilities                139,749      159,313
  Long-term debt and other                                 
   liabilities                                 478,026      463,967
  Deferred income taxes                         66,023       62,970
  Minority interests                            18,696       16,357
  Shareholders' equity:
    Common stock                                 6,121        6,163
    Capital in excess of par value              11,151       22,454
    Retained earnings                          636,390      618,128
    Accumulated  other  comprehensive          
     income (loss)                              (4,311)     (10,548)
      Total shareholders' equity               649,351      636,197
      Total liabilities and                 
       shareholders' equity                 $1,351,845   $1,338,804


  Note: The balance sheet at June 28, 1998, has been derived from the audited
  financial statements at that date but does not include all of the information
  and footnotes required by generally accepted accounting principles for
  complete financial statements.

  See Accompanying Notes to Condensed Consolidated Financial Statements.


                                   UNIFI, INC.
                   Condensed Consolidated Statements of Income
                                       (Unaudited)

                                                For the Quarters Ended
                                             September 27, September 28,
                                                  1998         1997
                                                 (Amounts in Thousands,  
                                                  Except Per Share Date)
  
  Net sales                                      $328,815     $329,842
  Cost of goods sold                              281,338      280,324
  Selling, general & admin. expense                11,563        9,895
  Operating income                                 35,914       39,623
  Interest expense                                  6,586        3,271
  Interest income                                     476          458
  Other (income) expense                              551         (290)
  Equity in earnings of unconsolidated                
   affiliates                                       1,744        4,621
  Income before income taxes                       30,997       41,721 
  Provision for income taxes                        9,967       14,196 
  Income before cumulative effect of                
   accounting change                               21,030       27,525
  Cumulative effect of accounting                  
   change, net of tax                               2,768           --
  Net income                                      $18,262      $27,525  
                                                  
  Earnings per common share:
   Income before cumulative effect
    of accounting change                             $.34         $.45
   Cumulative effect of accounting                 
    change, net of tax                                .04           --
   Net income per common share                       $.30         $.45
  Earnings per common share -                       
   assuming dilution:                  
   Income before cumulative effect
    of accounting change                             $.34         $.45
   Cumulative effect of accounting                 
    change, net of tax                                .04           --
   Net income per common share -
    assuming dilution                                $.30         $.45
                                                    
  Cash dividends per share                           $ --         $.14




  See Accompanying Notes to Condensed Consolidated Financial Statements.


                                   UNIFI, INC.
                 Condensed Consolidated Statements of Cash Flows
                                   (Unaudited)

                                              For the Quarter Ended
                                          September 27,  September 28,
                                                1998        1997
                                             (Amounts in Thousands)

  Cash and cash equivalents provided by
     operating activities                       $44,174       $54,946

  Investing activities:
     Capital expenditures                       (45,168)      (59,022)
     Investments in unconsolidated equity       
       affiliates                               (10,000)      (34,027) 
     Sale of capital assets                          75           203
     Proceeds from notes receivable                 505           137
     Other                                          971          (361)
       Net investing activities                 (53,617)      (93,070)

  Financing activities:
     Borrowing of long-term debt                 35,000        75,000
     Repayment of long-term debt                 (5,285)      (10,120)
     Issuance of  Company common stock              641           608
     Stock option tax benefit                        --         1,443
     Purchase and retirement of Company         
       common stock                             (11,986)      (17,394)
     Cash dividends paid                             --        (8,557)
     Other                                          (48)          (27)
       Net financing activities                  18,322        40,953

  Currency translation adjustment                   361          (128)

  Net increase (decrease) in cash and cash        
    equivalents                                   9,240         2,701

  Cash and cash equivalents - beginning           8,372         9,514

  Cash and cash equivalents - ending            $17,612       $12,215




  See Accompanying Notes to Condensed Consolidated Financial Statements.


                                   UNIFI, INC.
               Notes to Condensed Consolidated Financial Statements


 (a)Basis of Presentation

    The information furnished is unaudited and reflects all adjustments which
    are, in the opinion of management, necessary to present fairly the financial
    position at September 27, 1998, and the results of operations and cash flows
    for the periods ended September 27, 1998, and September 28, 1997.  Such
    adjustments consisted of normal recurring items except for the cumulative
    effect of accounting change recorded in the current quarter as described
    further in Note (e). Interim results are not necessarily indicative of
    results for a full year.  It is suggested that the condensed consolidated
    financial statements be read in conjunction with the financial statements
    and notes there to included in the Company's latest annual report on
    Form 10-K. The Company has reclassified the presentation of certain prior
    year information to conform with the current presentation format.

 (b)Income Taxes

    Deferred income taxes have been provided for the temporary differences
    between financial statement carrying amounts and tax basis of existing
    assets and liabilities.

    The difference between the statutory federal income tax rate and the
    effective tax rate is primarily due to the realization of state and
    federal tax credits and the results of foreign subsidiaries which are
    taxed at rates below those of U.S. operations.

 (c)Earnings per share

    The following table sets forth the reconciliation of the numerators and
    denominators of the basic and diluted earnings per share computations:

                                                Quarters Ended
                                         September 27, September 28,
                                               1998       1997
           Numerator:
            Income before cumulative
             effect of accounting
              change                         $21,030     $27,525
                                                  
            Cumulative effect of
             accounting change, net
              of tax                           2,768          --
            
            Net income                       $18,262     $27,525


                                               Quarters Ended
                                        September 27, September 28,
                                              1998       1997

             Denominator:                        
              Denominator for basic                
               earnings per share -                
                weighted average shares       61,401      61,009
              
              Effect of dilutive
               securities:
                Stock options                      6         689
              
              Dilutive potential common
               shares Denominator for
                diluted earnings per
                 share-adjusted weighted
                  average shares and
                   assumed conversions        61,407      61,698    


 (d) Comprehensive Income

     In June 1997, the FASB issued  Statement of Financial Accounting Standards
     No. 130,``Reporting Comprehensive Income,''(SFAS 130) which the Company
     has adopted in the current quarter. The adoption of this Statement had no
     impact on the Company's net income or shareholders' equity. SFAS 130 
     requires the reporting of comprehensive income and its components in
     complete general purpose financial statements  as well as requires certain
     interim comprehensive income information be disclosed.Comprehensive income
     represents the change in net assets of a business during a period from non
     -owner sources. Such non-owner changes in net assets that are not included
     in net income include, among others, foreign currency translation
     adjustments, unrealized gains and  losses on available-for-sale securities
     and certain minimum pension liabilities. Prior year statements have been
     reclassified to conform to SFAS 130.

     During the first quarter of fiscal 1999 and 1998, total comprehensive
     income (loss) amounted to $6.2 million and $(2.9) million, respectively and
     was comprised of foreign currency translation adjustments. The Company
     does not provide  income taxes on  the impact of  currency translations as
     earnings from foreign subsidiaries are deemed to be permanently invested.

 (e) Cumulative Effect of Accounting Change

     In April 1998, the AICPA issued SOP 98-5, ``Reporting on the Costs of
     Start-Up  Activities,'' (SOP  98-5) which requires start-up costs, as
     defined, to be  expensed as  incurred. In accordance with this SOP, any
     previously capitalized start-up costs are required to be written-off as  a
     cumulative effect of a change in  accounting principle. The Company, upon
     adoption  of  this  SOP  in  the  current  quarter,  has written off the
     unamortized balance of  such previously  capitalized start-up costs as  of
     June 29, 1998, of $4.5 million ($2.8 million after tax) or $.04 per diluted
     share as a cumulative catch-up adjustment.


 (f) Recent Accounting Pronouncements

     In June 1997, the FASB issued  Statement of Financial Accounting Standards
     No.  131,  ``Disclosures  about  Segments  of  an Enterprise and  Related
     Information,'' (SFAS 131) which  is required to be adopted  in the  fourth
     quarter of fiscal 1999.  SFAS  131  establishes  standards  for public
     companies  for  the  reporting  of  financial information from operating
     segments in annual and interim financial statements as well as establishes
     standards for related disclosures  about products and services, geographic
     areas and major customers.  Operating  segments are defined in SFAS 131  as
     components of an enterprise about  which separate financial information  is
     available to the chief operating decision  maker for purposes of assessing
     performance and allocating resources. The Company  has not completed  its
     analysis of the effect that the adoption of this standard will have on its
     financial statement disclosure; however, the adoption of SFAS 131 will not
     affect consolidated results of operations or financial position.

     In March 1998,  the AICPA  issued SOP 98-1, ``Accounting for the Cost of
     Computer Software Developed for or Obtained for Internal-Use,'' (SOP 98-1).
     This SOP is effective for the  Company in the first quarter of fiscal
     year 2000  if  not  previously  adopted. SOP  98-1  will require  the
     capitalization of  certain costs  incurred after  the date  of adoption  in
     connection with developing  or obtaining software  for internal use. The
     Company currently expenses certain of  these internal costs when incurred.
     The Company has not yet assessed what the impact of the SOP will be on the
     Company's future earnings or financial position.

     In June 1998, the FASB issued  Statement of Financial Accounting Standards
     No. 133,``Accounting for Derivative Instruments and Hedging Activities,''
     (SFAS 133) which  the Company  is required to  adopt in  fiscal year 2000.
     SFAS 133 permits early adoption as  of the beginning of any fiscal quarter
     after its issuance.   SFAS 133  will require the  Company to recognize  all
     derivatives on the balance sheet at  fair value.  Derivatives that are  not
     hedges must be adjusted to fair value through income. If the derivative is
     a hedge, depending on the nature of the hedge, changes in the fair value of
     derivatives will either be offset against  the change in fair value of the
     hedged  assets,  liabilities,  or  firm  commitments  through earnings  or
     recognized  in  other  comprehensive  income  until  the  hedged item   is
     recognized in earnings.  The ineffective  portion of a derivative's change
     in fair value will be immediately recognized in earnings.  The Company  has
     not yet determined what the effect of Statement 133 will be on the earnings
     and financial position of the Company.


                     Management's Discussion and Analysis of
                  Financial Condition and Results of Operations


  The following is  Management's discussion and analysis of certain significant
  factors that  have affected the Company's  operations and material changes in
  financial condition during the periods included in the accompanying Condensed
  Consolidated Financial Statements.

  Results of Operations

  Consolidated net sales  decreased 0.3% in the  quarter from $329.8 million to
  $328.8 million.   Unit  volume for the  quarter increased  6.1% while average
  unit sales prices, based on product mix, declined 6.0%.  The increase in unit
  volumes during  the quarter is  primarily due to  the formation  of a limited
  liability company  with Burlington Industries, Inc. (Burlington) on
  May 29, 1998, and the acquisition on November 14, 1997,  of  SI  Holding 
  Company (Spanco).

  Domestically, polyester  and nylon  yarn  net  sales declined  1.3% for  the
  quarter due primarily to reductions in unit price, based on product mix.  Our
  performance year over year  was negatively impacted by the continuing effects
  of the Asian financial crisis, as  imports of yarns, fabrics and garments put
  pressure  on margins  and affected  both domestic  and export polyester  yarn
  volumes. In  addition, volume  in our  dyed polyester  yarns for automotive
  upholstery  was greatly  reduced as  a result  of the  General Motors strike.
  Internationally, sales in local  currency increased 13.6% for the quarter due
  to both increased unit volume and sales prices.

  Gross  profit decreased  4.1% to  $47.5 million  for the  quarter while gross
  margin (gross  profit as a percentage  of net sales)  declined 0.6% to 14.4%.
  The  decline  in  gross margin  reflects  lower  average  selling prices  and
  increased manufacturing  and packaging costs, which  were partially offset by
  lower average raw material costs.

  Selling, general  and administrative  expenses as  a percentage  of net sales
  increased from 3.0% in last year's quarter to 3.5% this quarter.  On a dollar
  basis, selling, general  and administrative expense increased $1.7 million to
  $11.6 million for the quarter. Higher selling,  general and administrative
  expenses for the current year quarter reflects cost increases associated with
  the prior year acquisition of  Spanco, the formation of the limited liability
  company  with  Burlington discussed  above  and  higher sales  costs for our
  international operations as we try to penetrate new markets.

  Interest  expense  increased $3.3  million  to  $6.6 million  in  the current
  quarter.    The  increase  in  interest  expense  reflects  higher levels  of
  outstanding  debt  at higher  average  interest  rates and  the reduction  of
  interest capitalized  for major construction  projects as certain significant
  projects in process in the  prior year fiscal quarter have been substantially
  completed.   In  February 1998,  the  Company issued  $250.0 million of  debt
  securities with a coupon rate of 6.5%, the proceeds of which were utilized to
  repay a portion of the revolving credit facility.


  Equity in the earnings of our unconsolidated affiliates, Parkdale America,
  LLC (``the LLC'') and Micell Technologies, Inc., (Micell) net of the  minority
  interest in our limited  liability company formed with Burlington amounted to
  $1.7 million in  the first quarter of fiscal  1999 compared with $4.6 million
  in the first  quarter of fiscal 1998.   The decline is primarily attributable
  to the inclusion of the  minority interest of Burlington and reduced earnings
  from the LLC.   The operating results of the  LLC are expected to be lower in
  the  next few  quarters  due to  pricing  pressures on  spun  cotton products
  associated with anticipated weaker demand and excess capacity issues.

  The  effective tax  rate has  decreased from  34.0% to  32.2% in  the current
  quarter primarily due  to earnings of Irish operations,  which are taxed at a
  10.0% effective rate,  increasing as a percentage  of pre-tax earnings of the
  Company.   The difference between  the statutory federal  income tax rate  and
  the  effective tax  rate is  primarily due  to the  realization of state  and
  federal  tax credits and the  results of foreign subsidiaries which are  taxed
  at rates below those of U.S. operations.

  In April 1998, the AICPA issued SOP 98-5, ``Reporting on the Costs of Start-
  Up Activities,'' (SOP 98-5) which  requires start-up costs, as defined, to  be
  expensed  as  incurred.     In  accordance  with  this  SOP,  any previously
  capitalized start-up  costs are  required to  be written-off  as a cumulative
  effect of  a change in accounting  principle.  The  Company, upon adoption  of
  this SOP in  the current quarter, has written  off the unamortized balance  of
  such  previously capitalized  start-up costs  as  of June  29, 1998, of  $4.5
  million ($2.8  million after tax) or  $.04 per diluted  share as a cumulative
  catch-up adjustment.

  In June 1997, the FASB issued Statement of Financial Accounting Standards
  No. 131,``Disclosures about Segments of an Enterprise and Related
  Information,''(SFAS 131) which is required to be adopted in the fourth quarter
  offiscal 1999.  SFAS 131 establishes standards for public companies for the
  reporting of financial information  from operating  segments  in  annual  and
  interim financial statements as well as establishes standards for related
  disclosures about products and services, geographic areas and major customers.
  The Company has not completed its analysis of the effect that the adoption  of
  this standard will have on its financial statement disclosure; however, the
  adoption of SFAS 131 will not affect consolidated results of operations  or
  financial position.

  In  March 1998,  the AICPA  issued  SOP 98-1,``Accounting for the Cost of
  Computer Software Developed  for or Obtained for Internal-Use,'' (SOP  98-1).
  This SOP  is effective for  the Company in  the first quarter of fiscal year
  2000 if not previously adopted.  SOP 98-1 will require the capitalization of
  certain  costs  incurred  after  the  date  of  adoption  in connection  with
  developing or  obtaining software  for internal  use.   The Company currently
  expenses certain of these internal costs  when incurred.  The Company has not
  yet  assessed what  the impact  of the  SOP will  be on  the Company's future
  earnings or financial position.

  In June 1998, the FASB issued Statement of Financial Accounting Standards 
  No. 133,``Accounting for Derivative Instruments and Hedging Activities,''
  (SFAS 133) which the Company is required to adopt in fiscal year 2000.
  SFAS 133 permits early  adoption as of the  beginning of any  fiscal quarter
  after its issuance. SFAS 133 will require the Company to recognize all



  derivatives on the balance sheet at fair value. Derivatives that are not
  hedges must be adjusted to fair value through income. If the derivative  is a
  hedge, depending on the nature of the hedge, changes in the fair value  of
  derivatives will either be offset against the change in fair value of  the
  hedged assets, liabilities, or firm commitments through earnings   or
  recognized in other comprehensive  income until the hedged item is recognized
  in earnings.  The ineffective portion  of a derivative's change in fair value
  will  be  immediately  recognized in  earnings. The  Company  has not yet
  determined  what the  effect of  Statement 133  will be  on the earnings  and
  financial position of the Company.

  As a result of the above, the Company realized during the current quarter net
  income of $18.3  million, or diluted earnings per  share of $.30, compared to
  $27.5 million, or $.45 per share,  for the corresponding quarter of the prior
  year. For  the current  quarter, income before  the cumulative  effect of the
  accounting change was $21.0 million, or $.34 per diluted share, respectively.

  Liquidity and Capital Resources

  Cash provided  by operations  continues to  be a  primary source of funds to
  finance  operating  needs  and capital  expenditures.  Cash generated  from
  operations  was  $44.2 million  for  the  quarter ended  September 27, 1998,
  compared  to $54.9  million for  the  prior year  corresponding period.  The
  primary  sources of  cash  from operations,  other  than net  income, were  a
  decrease in accounts  receivable of $23.7 million  and an increase in current
  income  taxes payable  of $5.9  million and  non-cash adjustments aggregating
  $26.7 million.  Depreciation and amortization of $21.3 million, the after-tax
  cumulative  accounting change  of $2.8  million and  the deferred income  tax
  provision of $3.0 million, offset by earnings of unconsolidated affiliates  of
  $0.3 million, were the primary components of the non-cash adjustments to  cash
  provided  by  operations.   Offsetting  these  sources  were  an increase  in
  inventory of $6.6 million and a  decrease in accounts payable and accruals  of
  $23.0 million.  All working capital changes have been adjusted to exclude  the
  effects of currency translation.

  Working  capital  levels  are  more  than  adequate  to  meet  the operating
  requirements  of the  Company.   The Company  ended the  current quarter  with
  working capital  of $225.1 million, which  included cash and cash equivalents
  of $17.6 million.

  The Company utilized $53.6  million for net investing activities and obtained
  $18.3  million  from  net  financing  activities  during  the  quarter ended
  September  27, 1998.   Significant  expenditures during  this period included
  $45.2 million for capacity  expansions and upgrading of facilities, $10.0 for
  investments  in equity  affiliates  and $12.0  million  for the purchase  and
  retirement of Company  common stock.  The  Company obtained proceeds from net
  borrowings  under  its  long-term  debt  agreements  of  $29.7 million  which
  partially offset these cash expenditures.

  At September 27, 1998,  the Company has committed approximately $79.9 million
  for the purchase and upgrade  of equipment and facilities, which is scheduled
  to be  expended during the remainder  of fiscal year 1999  and in fiscal year
  2000.   A significant component of  these committed funds as  well as a major
  component  of  the   year-to-date  capital  expenditures  is  the continuing
  construction of a new nylon texturing and covering facility in Madison, North
  Carolina.  This plant  will  consolidate the    existing capacity  at several



  locations,  replacing older  equipment with  state-of-the-art technology, and
  will  provide for  additional capacity  and expansion  capabilities. Certain
  construction  and  machinery  components  of  this  project  are still  under
  negotiation.

  Effective July  16, 1998, the  Board of Directors  terminated the previously-
  established   policy of paying  cash dividends equal  to approximately 30% of
  the Company's after-tax earnings for the previous year. In lieu of this cash
  dividend, the Board of Directors has authorized management to utilize cash 
  equal to the same 30% of previous year's earnings to purchase shares of the
  Company's stock as management deems advisable. The Board of Directors also
  increased the remaining authorization pursuant to a resolution originally
  established  on  October 21, 1993, to purchase 10 million shares of Unifi's
  common stock. During the current quarter,the Company purchased 454,000 shares.
  Accordingly, there remains an authorization to repurchase approximately
  9.5  million shares. The Company will continue to  operate its stock buy-back
  program from time to time as it deems appropriate, based on prevailing
  financial and market conditions.

  Management  believes  the  current  financial  position  of  the Company  in
  connection with its operations and its  access to debt and equity markets are
  sufficient  to meet  anticipated capital  expenditure, strategic acquisition,
  working capital, Company common stock repurchases and other financial needs.

  Year 2000 Compliance Status

  The Company continues to actively address the business issues associated with
  the year 2000  that impact information technology systems and non-information
  technology  systems  (i.e., embedded   technology)  both  internally and  in
  relation to our  external customers, suppliers and other business associates.
  Factors involved  in addressing such business  issues include the evaluation,
  testing  and   implementation  of  the   Company's  enterprise-wide systems;
  evaluation, upgrading  and certifying of  non-information technology systems;
  assessing  and   testing  significant  customers'   and  vendors' compliance
  strategies and  monitoring the status  thereof (including electronic commerce
  with these companies); and, evaluating and monitoring the compliance plans of
  businesses in which the Company maintains investments in their operations.

  The Company has created a team of professionals with the responsibility of 
  addressing business issues associated with the year 2000.  The Company does
  not believe any material exposures or contigencies exist with respect to its 
  internal information systems as the installation of the remaining enterprises-
  wide software is anticipated to be completed in the necessary time frame.  At
  present, the Company estimates it is approximately two-thirds complete with 
  its enterprise-wide software implementation efforts.  Additionally, as a 
  precautionary measure, back-up plans are in process of being formulated in the
  event certain enterprise-wide applications are not fully implemented by the 
  end of the 1999 fiscal year.  Also, the Company has completely inventoried its
  manufacturing plant applications and is in process of testing year 2000 
  compliance of some of these systems.  Embedded technology devices are also in
  process of being inventoried and detailed plans are being established to 
  evaluate and test those identified.

  The Company has requested information on the year 2000 compliance plans and
  status from its significant vendors and equity affiliates and is presently not
  aware of any material exposures or contingencies.  The Company is also in 
  process of surveying its major customers to identify any customers at risk
  requiring further discussion.

  The Company is requesting assurance from its major suppliers that they are
  addressing the year 2000 issues to avoid disruption of products and services.
  Certain suppliers, although not indicating any problems or concerns at the 
  present time, are unwilling to provide any guarantees or assurances.  
  Consequently, the Company cannot predict the likelihood or impact on its  
  business resulting from noncompliance by such parties.

  Costs incurred in the Company's year 2000 compliance efforts are being
  expensed as incurred.  Anticipated expenditures related to year 2000 
  compliance readiness, in addition to those associated with the enterprise-wide
  software implementation, are expected to be approximately $0.5 million for the
  fiscal year ending June 27, 1999.

  Euro Conversion

  The Company conducts business in multiple currencies, including the currencies
  of various European countries in European Union which will be participating in
  the single European currency by adopting the Euro as their common currency as
  of January 1, 1999.  Additionally, the functional currency of our Irish
  operation and several sales office locations will change before
  January 1, 2002, from their historical currencies to the Euro.  During the 
  period January 1, 1999, to January 1, 2002, the existing currencies of the 
  member countries will remain legal tender and customers and vendors of the 
  Company may continue to use these currencies when conducting business. 
  Currency rates during this period, however, will no longer be computed from 
  one legacy currency to another but instead will first be converted into the 
  Euro.  The Company is currently evaluating the Euro conversion and the impact
  on its business, both strategically and operationally.  At this time, 
  management has not completed its assessment of the impact of the conversion;
  however, the conversion to the Euro is not expected to have a material adverse
  effect on the financial condition or results of operations of the Company.

  Forward Looking Statements
  
  Certain statements in this Management's Discussion and Analysis of Financial
  Condition and Results of Operations and other sections of this quarterly 
  report contain forward-looking statements within the meaning of federal 
  security laws about the Company's financial condition and results of 
  operations that are based on management's current expectations, estimates and
  projections about the markets in which the Company operates, management's 
  beliefs and assumptions made by managements.  Words such as "expects," 
  "anticipates," "believes," "estimates," variations of such words and other 
  similar expressions are intended to identify such forward-looking statements.
  These statements are not guarantees of future performance and involve certain
  risks, uncertainties and assumptions which are difficult to predict.Therefore,
  actual outcomes and results may differ materially from what is expressed or 
  forecasted in, or implied by, such forward-looking statements.  Readers are
  cautioned not to place undue reliance on these forward-looking statements, 
  which reflect management's judgement only as of the date hereof.  The Company
  undertakes no obligations to update publicly any of these forward-looking
  statements to reflect new information, future events or otherwise.

  Factors that may cause actual outcome and results to differ materially from 
  those expressed in, or implied by, these forward-looking statements include, 
  but are not necessarily limited to, availability, sourcing and pricing of raw
  materials, pressures on sales prices due to competition and economic 
  conditions, reliance on and financial viability of significant customers,
  technological advancements, employee relations, changes in construction 
  spending and capital equipment expenditures (including those related to 
  unforeseen acquisition opportunities), the timely completion of construction 
  and expansion projects planned or in process, continued availability of 
  financial resources through financing arrangements and operations,
  negotiations of new or modifications of existing contracts for asset
  management and for property and equipment construction and acquisition, 
  regulations governing tax laws, other governmental and authoritative bodies'
  policies and legislation, the continuation and magnitude of the Company's 
  common stock repurchase program and proceeds received from the sale of assets
  held for disposal. In addition to these representative factors, forward-
  looking statments could be impacted by general domestic and international
  economic and industry conditions in the markets where the Company competes,
  such as changes in currency exchange rates, interest and inflation rates,
  recession and other economic and political factors over which the Company has
  no control.



  Part II. Other Information

  Item 6.      Exhibits and Reports on Form 8-K


              (27)   Financial Data Schedule

           (b)   No reports on Fom 8-K have been filed during the quarter ended 
                 September 27, 1998.



                                   UNIFI,INC.                                
                                  

  Signatures                                              

  Pursuant to the requiremnts of the Securities Exchange Act of 1934, the 
  Registrant has caused this report to be signed on its behalf by the 
  undersigned there unto duly authorized.


                                                UNIFI,INC.
                                              
                                                
                                                
                                                
                                                
                                                
  Date: 11-12-1998                              WILLIS C. MOORE, III
  ----------------                              --------------------
                                                Willis C. Moore, III
                                                Senior-Vice President and
                                                Chief Financial Officer (Mr.
                                                Moore is the Principal
                                                Financial and Accounting
                                                Officer and been duly
                                                authorized to sign on behalf
                                                of the Registrant.)

 


 

5 The schedule contains summary financial information extracted from the Company's Quarterly report for the three month period ended September 27, 1998, and is qualified in its entirety by reference to such financial statements. 1000 3-MOS JUN-27-1999 SEP-27-1998 17,612 0 209,218 8,875 144,952 364,882 1,191,988 517,870 1,351,845 139,749 478,026 0 0 6,121 643,230 1,351,845 328,815 328,815 281,338 281,338 0 1,457 6,586 30,997 9,967 21,030 0 0 2,768 18,262 .30 .30 Other Stockholders Equity of $643,230 is comprised of Capital in Excess of Par Value of $11,151, Retained Earnings of $636,390 and Accumulated Other Comprehensive Income (Loss) of $(4,311). Pursuant to FASB 128, "Earnings per Share" which the Company adopted in the second quarter of the prior fiscal year, the Company changed its method of calculating earnings per share and restated all prior periods. Under the new requirements for calculating basic earnings per share, the dilutive effect of stock options are excluded. Basic earnings per share for the current period is reflected above under the "Primary" line item. Diluted earnings per share as reflected in the above schedule, has been calculated to conform with the new pronouncemnet.