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 26, 1999

           [] 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 October 31, 1999
Common stock, par value $.10 per share       59,204,952 shares

Part I.  Financial Information

                                   UNIFI, INC.
                      Condensed Consolidated Balance Sheets

                                           September 26,      June 27,
                                               1999             1999
                                            (Unaudited)        (Note)
                                               (Amounts in Thousands)
ASSETS:
Current assets:
 Cash and cash equivalents                      $42,606        $44,433
 Receivables                                    198,994        185,784
 Inventories:
   Raw materials and supplies                    50,646         45,584
   Work in process                               17,451         14,584
   Finished goods                                66,152         69,749
 Other current assets                             2,669          2,015
   Total current assets                         378,518        362,149
Property, plant and equipment                 1,237,138      1,231,013
 Less:  accumulated depreciation                559,842        541,275
                                                677,296        689,738
Equity investments in unconsolidated
  affiliates                                    210,753        207,142
Other noncurrent assets                         105,072        106,811
   Total assets                              $1,371,639     $1,365,840

LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities:
 Accounts payable                               $87,773        $68,716
 Accrued expenses                                37,914         52,889
 Income taxes payable                             7,155          7,392
 Current maturities of long-term debt
   and other current liabilities                  7,058         16,255
   Total current liabilities                    139,900        145,252
Long-term debt and other liabilities            487,332        478,898
Deferred income taxes                            81,377         78,369
Minority interests                               17,708         17,183
Shareholders' equity:
 Common stock                                     5,955          5,955
 Capital in excess of par value                      27             13
 Retained earnings                              661,685        658,353
 Accumulated other comprehensive loss           (22,345)       (18,183)
   Total shareholders' equity                   645,322        646,138
   Total liabilities and shareholders'
     equity                                  $1,371,639     $1,365,840

Note:  The balance sheet at June 27, 1999, 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 Statement of Income
                                   (Unaudited)

                                          For the Quarters Ended
                                      September 26,    September 27,
                                          1999             1998
                               (Amounts in Thousands Except Per Share Date)

Net sales                                $304,714       $328,815
Cost of goods sold                        270,455        281,338
Selling, general & admin. expense          14,422         11,563
Operating income                           19,837         35,914
Interest expense                            7,445          6,586
Interest income                               684            476
Other (income) expense                       (332)           551
Equity in (earnings) losses of
  unconsolidated affiliates                 4,364         (4,094)
Minority interests                          2,394          2,350
Income before income taxes                  6,650         30,997
Provision for income taxes                  3,318          9,967
Income before cumulative effect of
  accounting change                         3,332         21,030
Cumulative effect of accounting
  change, net of tax                            -          2,768
Net income                                 $3,332        $18,262

Earnings per common share - basic:
 Income before cumulative effect of
  accounting change                          $.06           $.34
 Cumulative effect of accounting
  change, net of tax                            -            .04
 Net income per common share                 $.06           $.30
Earnings per common share -
  assuming dilution:
 Income before cumulative effect
  of accounting change                       $.06           $.34
 Cumulative effect of accounting
  change, net of tax                            -            .04
 Net income per common share -
  assuming dilution                          $.06           $.30


See Accompanying Notes to Condensed Consolidated Financial Statements.


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

                                            For the Quarters Ended
                                        September 26,    September 27,
                                            1999             1998
                                            (Amounts in Thousands)

Cash and cash equivalents provided by
   operating activities                     $21,117          $44,174

Investing activities:
  Capital expenditures                      (12,345)         (45,168)
  Investments in unconsolidated
   equity affiliates                        (17,976)         (10,000)
  Sale of capital assets                         46               75
  Other                                        1,061           1,476
     Net investing activities                (29,214)        (53,617)

Financing activities:
  Borrowing of long-term debt                 10,000          35,000
  Repayment of long-term debt                   (127)         (5,285)
  Issuance of Company common stock                14             641
  Purchase and retirement of Company
   common stock                                    -         (11,986)
  Distributions to minority interest
   Shareholders                               (3,000)              -
  Other                                            -             (48)
     Net financing activities                  6,887          18,322

Currency translation adjustment                 (617)            361

Net increase (decrease) in cash and
 cash equivalents                             (1,827)          9,240

Cash and cash equivalents - beginning         44,433           8,372

Cash and cash equivalents - ending           $42,606         $17,612



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 26, 1999, and the results of operations and cash flows
  for  the  periods  ended  September 26, 1999, and September  27,  1998.  Such
  adjustments consisted of normal recurring items in the current year.  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 thereto 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 losses of foreign subsidiaries for
   which  no  significant  tax  benefit  was recognized thereby  distorting the
   effective rate for our consolidated 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
  (amounts in thousands):

                                                For the Quarters Ended
                                              September 26,  September 27,
                                                  1999           1998

        Numerator:
         Income before cumulative
          effect of accounting change            $3,332        $21,030

         Cumulative effect of
          accounting change, net of tax               -          2,768

         Net income                              $3,332        $18,262


                                                For the Quarters Ended
                                              September 26,  September 27,
                                                  1999           1998

        Denominator:
         Denominator for basic
          earnings per share -
          Weighted average shares               59,549         61,401

         Effect of dilutive securities:
          Stock options                              -              6

         Dilutive potential common
          shares denominator for
          diluted earnings per
          share-Adjusted weighted
          average shares and
          assumed conversions                   59,549         61,407

(d)Comprehensive Income

   Comprehensive  income (loss) amounted to ($0.8) million for the first quarter
   of  fiscal  2000 and $12.0 million for the first quarter of fiscal  1999, and
   was  comprised  of net  income and 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  first quarter of fiscal 1999, wrote  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)Segment Disclosures

   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 the Company 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
   adoption  of  SFAS  131 did not affect consolidated results of  operations or
   financial position.  Following is the Company's selected segment information
   for the quarters ended September 26, 1999 and September 27, 1998 (amounts in
   thousands):

                                                             All
                                      Polyester   Nylon     Other     Total
    Quarter ended September 26, 1999:
     Net sales to external customers  $193,111  $106,658   $4,945   $304,714
     Intersegment net sales                  4       109    3,009      3,122
     Operating income                   10,564     9,959      481     21,004
     Depreciation and amortization      14,675     5,349      156     20,180
     Total assets                      704,797   364,303   13,768  1,082,868
    Quarter ended September 27, 1998:
     Net sales to external customers  $212,253  $116,562       $-   $328,815
     Intersegment net sales              8,935     1,410        -     10,345
     Operating income                   22,868    14,306        -     37,174
     Depreciation and amortization      14,432     5,068        -     19,500
     Total assets                      709,553   206,661   13,392    929,606

                                                 For the Quarters Ended
                                         September 26, 1999  September 27, 1998
    Operating income:
     Reportable segments operating income        $21,004             $37,174
     Net standard cost adjustment to LIFO         (1,000)              1,817
     Unallocated operating expense                  (167)             (3,077)
     Consolidated operating income               $19,837             $35,914

  Certain  indirect manufacturing and selling, general and administrative  costs
  are allocated to the operating segments based on activity drivers relevant  to
  the   respective  costs.   The  primary  differences  between  the   segmented
  financial  information of the operating segments, as reported  to  management,
  and  the Company's consolidated reporting relates to intersegment transfer  of
  yarn,  fiber  costing  and  capitalization of property,  plant  and  equipment
  costs.   Prior  to  the  current fiscal year, substantially  all  intersegment
  transfers  of  yarn  were treated as internal sales at a selling  price  which
  approximated  cost plus a normalized profit margin.  In the  current  quarter,
  intersegment  transfers  of  yarn were treated  as  inventory  transfers,  and
  profit  margins  recorded  only  on  intersegment  transfers  from  our  Unifi
  Textured  Polyester joint venture. Domestic operating divisions'  fiber  costs
  are  valued  on a standard cost basis, which approximates first-in,  first-out
  accounting.  Subsequently, for those components of inventory valued  utilizing
  the  last-in, first-out method, an adjustment is made at the corporate  level.
  For  significant  capital projects, capitalization is delayed  for  management
  reporting  until  the  facility  is  substantially  complete.   However,   for
  consolidated financial reporting, assets are capitalized into construction  in
  progress  as  costs  are  incurred or carried as unallocated  corporate  fixed
  assets if they have been placed in service but have not as yet been moved  for
  management reporting.

  The increase in Nylon total assets is attributable to the reclassification  of
  property,  plant and equipment from unallocated corporate fixed assets.   This
  reclassification  primarily  relates  to  a  new  facility  that  had   become
  substantially completed.


(g)Recent Accounting Pronouncements

  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 current  quarter.   SOP  98-1
  provides  guidance on accounting for costs of developing or obtaining computer
  software  for  internal use.  In summary, costs incurred  in  the  preliminary
  project  stage  (formulation,  evaluation and selection  of  alternatives  and
  assessment  of existence of required technology) or post-implementation  stage
  (training  and  maintenance) should be expensed as incurred while  application
  development  costs  should  be  capitalized or  expensed  depending  on  their
  nature.   Application  development  costs include  external  direct  costs  of
  materials  and  services.   Examples  of  application  development  costs  are
  designing  the  chosen  path,  coding, testing  and  installing  the  software
  product  to  hardware.   The  Company previously  expensed  certain  of  these
  internal  costs when incurred.  The adoption of this standard  did  not  have,
  nor  is  it  expected to have, a material effect on the Company's  results  of
  operations 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)  and  in  August 1999, the FASB issued Statement of Financial  Accounting
  Standards   No.  137  "Accounting  for  Derivative  Instruments  and   Hedging
  Activities - Deferral of the Effective Date of FASB Statement No. 133,"  which
  delayed  the  effective date the Company is required to adopt SFAS  133  until
  its fiscal year 2001.  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

General

Consolidated  net  sales decreased 7.3% in the quarter from  $328.8  million  to
$304.7  million.  Unit volume for the quarter increased 3.5% while average  unit
sales prices, based on product mix, declined 10.4%.

Domestically, polyester and nylon yarn net sales declined 10.9% for the  quarter
due  primarily to reductions in unit price, based on product mix.   However,  as
the  quarter  progressed, the Company experienced continued improvement  in  the
domestic  business  as  unit  prices  were  increased  while  market  share  was
maintained.   Internationally, sales in local currency of  our  Irish  operation
decreased 27.3% for the quarter due to both lower unit volume and sales  prices.
The  currency  exchange  rate change from the prior year  to  the  current  year
adversely  effected current quarter sales translated to U.S.  dollars  for  this
operation by $1.6 million, or 7.2% over the prior year amount.

Gross  profit decreased by $13.2 million to $34.3 million for the quarter  while
gross margin (gross profit as a percentage of net sales) declined from 14.4%  in
the  prior  year quarter to 11.2%.  The decline in gross margin for the  quarter
reflects  pressures on sales prices as a result of imported  fiber,  fabric  and
apparel  as  well  as higher raw material and manufacturing  costs,  which  were
partially offset by lower packaging costs.

Selling,  general  and  administrative expenses as a  percentage  of  net  sales
increased  from 3.5% in last year's quarter to 4.7% this quarter.  On  a  dollar
basis,  selling,  general and administrative expense increased $2.8  million  to
$14.4.  Higher selling, general and administrative expenses for the current year
are  the result of our new business venture in Brazil acquired in April 1999 and
our  majority  ownership  in  Unifi  Technology  Group,  a  domestic  automation
solutions provider established in June 1999.

Segment Information

Net  sales  to  external  customers for our Polyester  segment  reflect  a  9.0%
decrease  as a result of lower sales prices, based on product mix.  Unit  volume
was  up  in the current quarter versus the prior year quarter due mainly to  our
prior year, fourth quarter acquisition in Brazil.  Gross margins were negatively
impacted  by  the  lower sales prices associated with the  previously  described
competitive  conditions.   Operating margins  for  our  Polyester  segment  were
further impacted by higher selling, general and administrative costs, which  are
primarily attributable to our Brazil acquisition.


Net  sales  to external customers for our Nylon segment were 8.5% lower  in  the
current  quarter versus the prior year quarter as a result of both lower  volume
and  sales prices, based on product mix.  Gross margin for this segment reflects
lower   sales  prices  and  higher  production  costs.   Selling,  general   and
administrative  costs  have  also  increased  over  the  prior  year  negatively
impacting operating margin.

Corporate

Interest  expense increased $0.8 million to $7.4 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.  The weighted average interest rate on outstanding
debt at September 26, 1999, was 6.1%.

Equity  in  the  earnings  (losses) of our unconsolidated  affiliates,  Parkdale
America, LLC ("the LLC") and Micell Technologies, Inc., (Micell) amounted  to  a
$4.4 million loss in the first quarter of fiscal 2000 compared with $4.1 million
profit  for the corresponding prior year quarter.  The declines are attributable
to  the reduced earnings from the LLC and higher start-up costs associated  with
Micell.   The cotton spinning operation of the LLC is being negatively  impacted
by  excess  spinning capacities in the market compounded by increased  off-shore
production of cotton fabric and apparel.

In  the  current  year fiscal quarter and corresponding prior  year  period  the
minority interest charge amounted to $2.4 million.

The  effective income tax rate has increased from 32.2% to 49.9% in the  current
quarter.  The current quarter increase reflects the reduction in earnings of our
Irish  operations, which are taxed at a 10.0% effective tax rate, and losses  in
our  Brazilian  operations for which no tax benefit was able to  be  recognized.
These losses distorted the effective tax rate for our consolidated 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 adopting this  SOP  in  the  first
quarter  of  fiscal 1999, wrote 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.

As  a  result of the above, the Company realized during the current quarter  net
income of $3.3 million, or diluted earnings per share of $.06, compared to $18.3
million,  or  $.30 per share, for the corresponding quarter of the  prior  year.
For  the  prior  year  quarter,  income before  the  cumulative  effect  of  the
accounting change was $21.0 million, or $.34 per diluted share, respectively.

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 current quarter.  SOP 98-1 provides guidance on
accounting  for costs of developing or obtaining computer software for  internal
use.   In summary, costs incurred in the preliminary project stage (formulation,
evaluation and selection of alternatives and assessment of existence of required
technology)  or post-implementation stage (training and maintenance)  should  be
expensed  as  incurred while application development costs should be capitalized
or  expensed  depending on their nature.  Application development costs  include
external  direct  costs  of  materials and services.   Examples  of  application
development costs are designing the chosen path, coding, testing and  installing
the  software product to hardware.  The Company previously expensed  certain  of
these internal costs when incurred.  The adoption of this standard did not have,
nor  is  it  expected  to have, a material effect on the  Company's  results  of
operations 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)
and  in August 1999, the FASB issued Statement of Financial Accounting Standards
No. 137 "Accounting for Derivative Instruments and Hedging Activities - Deferral
of  the  Effective Date of FASB Statement No. 133," which delayed the  effective
date the Company is required to adopt SFAS 133 until its fiscal year 2001.  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.

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
$21.1  million  for  the  quarter ended September 26, 1999,  compared  to  $44.2
million  for the prior year corresponding period.  The primary sources  of  cash
from operations, other than net income, was an increase in accounts payable  and
accruals  of  $10.1 million and non-cash adjustments aggregating $29.6  million.
Depreciation  and  amortization  of  $22.2  million,  the  deferred  income  tax
provision  of  $3.0  million  and  the undistributed  losses  of  unconsolidated
affiliates  of  $4.4  million,  were  the primary  components  of  the  non-cash
adjustments  to  cash  provided by operations.  Offsetting  these  sources  were
increases  in  accounts  receivable and inventory  of  $14.0  million  and  $5.8
million,  respectively.   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
$238.6 million, which included cash and cash equivalents of $42.6 million.

The  Company  utilized $29.2 million for net investing activities  and  obtained
$6.9   million  from  net  financing  activities  during  the  current  quarter.


Significant expenditures during this period included $12.3 million for  capacity
expansions  and  upgrading  of  facilities,  $18.0  for  investments  in  equity
affiliates,   and   $3.0   million  for  distributions  to   minority   interest
shareholders.  The Company obtained $9.9 million from net borrowings  under  its
long-term debt agreements.

At September 26, 1999, the Company has committed approximately $37.3 million for
the  purchase and upgrade of equipment and facilities, which is scheduled to  be
expended during the remainder of fiscal year 2000.

The  Board  of  Directors,  effective July 16,  1998,  increased  the  remaining
authorization pursuant to a resolution originally adopted on October  21,  1993,
to  purchase  10  million  shares of Unifi's common  stock.   There  remains  an
authorization to repurchase approximately 7.9 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 monitor and 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 contingencies exist  with  respect  to  its
internal information systems as the installation and testing of the enterprises-
wide  software is virtually complete.  At present, the Company estimates  it  is
approximately  99%  complete  with its enterprise-wide  software  implementation
efforts   and   manufacturing  plant  floor  applications,  including   embedded
technology devices.  Additionally, upgrades are ongoing for certain applications
where the Company has elected to postpone enterprise software conversion.

The  Company is also dependent upon its customers' and vendors' compliance  with
the  year 2000 problem and could face disruption of business in the event  these
efforts  are  unsuccessful.  The Company has requested information on  the  year
2000  compliance  plans  and  status from its  significant  vendors  and  equity
affiliates  and  is  not  aware  of  any material  exposures  or  contingencies.
Meetings have been conducted with critical suppliers and compliance testing  has


been  completed.   The Company has sent surveys to its major  customers  and  is
performing   necessary  follow-up  activities.   Conversion  plans   have   been
established  for  the  Company's EDI customers and vendors  and  procedures  are
substantially completed.  Efforts are ongoing to convert the remaining customers
in  the next month.  For certain customers who have elected not to upgrade their
EDI  technology,  they have conveyed to the Company that  they  have  year  2000
compliant systems and procedures in place. The Company will continue its efforts
to  gather information from businesses with whom it conducts business.  However,
such   information   is   subject  to  accurate  and  voluntary   communication.
Consequently,  the  Company  cannot predict the  likelihood  or  impact  on  its
business resulting from noncompliance by such parties.

Although  the Company believes its business critical systems will be  compliant,
there can be no assurances that all non-compliant systems will be identified  or
that all significant suppliers or customers will be year 2000 capable.  A worst-
case  scenario  could  include  interruption in  the  procurement  of  necessary
materials  or  the  disruption in manufacturing or  information  systems.   Such
events  would  adversely  impact  the distribution  of  product,  timelines  and
accuracy  of  record-keeping and collection of revenue among other  consequences
which  could  cause a material impact on the Company's results of operation  and
financial position.

Costs  incurred in the Company's year 2000 compliance efforts are being expensed
as incurred.  Anticipated expenditures related to year 2000 compliance readiness
are  expected to be approximately $0.3 million for the fiscal year  ending  June
25, 2000.

Euro Conversion

The  Company conducts business in multiple currencies, including the  currencies
of various European countries in the European Union which began 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  continues  to
evaluate  the Euro conversion and the impact on its business, both strategically
and operationally.  At this time, the conversion to the Euro has not had, nor is
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 management.  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 judgment only as  of  the
date  hereof.   The Company undertakes no obligation 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 and volumes 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 statements 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 Form 8-K have been filed during the quarter ended
           September 26, 1999


                             UNIFI, INC.


Signatures

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


                                             UNIFI, INC.






Date:   November 10, 1999                   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 has 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 26,1999, and is qualified in its entirety by reference to such financial statements. 1000 3-MOS JUN-25-2000 SEP-26-1999 $42,606 $0 $208,021 $9,027 $134,249 $378,518 $1,237,138 $559,842 $1,371,639 $139,900 $487,332 $5,955 $0 $0 $639,367 $1,371,639 $304,714 $304,714 $270,455 $270,455 $0 $841 $7,445 $6,650 $3,318 $3,332 $0 $0 $0 $3,332 $.06 $.06 Note 1: Other Stockholders Equity of $639,367 is comprised of Capital in Excess of Par Value of $27, Retained Earnings of $661,685 and Accumulated Other Comprehensive Loss of $(22,345).