The Lafayette Journal and Courier first reported the arrests.
Knauf is a starting receiver who has nine receptions for 95 yards and rushed 11 times for 92 yards and one touchdown this season. Woods is a redshirt freshman who has not caught a pass.
According to the newspaper, Lafayette police were called to a Kohl's department store at about 5:30 p.m. after the two allegedly stole two tie bars, valued at $20 each.
The school issued a statement Tuesday saying coach Darrell Hazell was aware of the arrests and would wait for the legal process to play out before determining any punishment.