The colours are still of a fairly good hue, although the backing fabric is darkened over time. There are darker areas to top left and top right.
Generally though the sampler itself is in good order, with no obvious holes or insect damage.
It might have slipped within its frame -but the gap showing is beneath the sampler, not above it. So it might have slipped upwards by being stored upside down, or else the frame isn't original. The glass is old though, with bubbles and imperfections.