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# VF's Supplier-Financed Payables Reach $848.0 Million As A $500.0 Million Note Comes Due In April
- URL: https://www.bullished.co/vfs-supplier-financed-payables-reach-848-0-million-as-a-500-0-million-note-comes-due-in-e51f158b/
- Published: 2026-10-28T11:52:46.000Z
- Updated: 2026-10-28T11:52:46.000Z
- Description: Inventory and payables swelled in the September quarter while cash burn narrowed and a note maturity moved into current liabilities.
- Author: Matteo Parrino
- Tags: SEC Filings, VFC, Industry: Consumer Discretionary

Obligations that VF Corp.'s suppliers can get paid early on, through a bank-backed program, [reached $848.0 million](https://www.sec.gov/Archives/edgar/data/0000103379/000010337926000135/vfc-20260926.htm?ref=bullished.co) inside accounts payable at the end of September, up from $466.0 million in March. VF, which owns The North Face, Vans and Timberland, said in its 10-Q filed Wednesday that $500.0 million of notes due April 2027 now sit in current liabilities.

## Payables and inventory balloon

Accounts payable rose to $1,284,221 thousand from $826,347 thousand in March. The company attributes the increase to the seasonality of inventory purchases and the timing of payments to vendors.

The supplier-finance balance eased from $960.7 million in the [prior quarter's filing](https://www.sec.gov/Archives/edgar/data/0000103379/000010337926000114/vfc-20260627.htm?ref=bullished.co) but is above the $696.6 million at September 2025\. Under the program, suppliers use VF's credit rating to be paid by financial institutions before the agreed payment date.

Inventories climbed to $1,984,403 thousand from $1,371,274 thousand in March, which the filing ties mainly to seasonality. Against September 2025, it cites planned purchases and expected sales growth in the second half of the fiscal year.

## Cash burn narrows, maturity looms

Cash used by operations was $(214,030) thousand for the six months, against $(372,468) thousand a year earlier. The company credits higher net income, tariff refunds and less cash tied up in working capital.

VF held $443.0 million of cash and had $25.0 million drawn on its $1.5 billion asset-backed credit facility, with $1.47 billion available. Working capital fell to $1,501.5 million from $1,828.3 million in March. Net debt to total capital was 69.2%, flat from March.

VF reported net income of $285.3 million, or $0.71 a share, for the quarter, against $189.8 million, or $0.48, a year earlier. [Revenue fell 4%](https://www.businesswire.com/news/home/20261028707927/en/VF-Corporation-Exceeds-Guidance-in-Second-Quarter-Fiscal-2027?ref=bullished.co) to $2.7 billion, including a 5% drag from the sale of Dickies.

## A margin helped by tariff refunds

Gross margin rose [320 basis points](https://www.businesswire.com/news/home/20261028707927/en/VF-Corporation-Exceeds-Guidance-in-Second-Quarter-Fiscal-2027?ref=bullished.co) (3.2 percentage points) to 55.4%, which the filing credits mainly to the Dickies sale, currency, price increases and lower product costs. Separately, $37.3 million of a $55.9 million tariff-related inventory reserve was released into cost of goods sold in the June quarter and the remaining $18.6 million in the September quarter. VF says it has now received substantially all of its tariff refund receivable.

The company said in its [earnings release](https://www.sec.gov/Archives/edgar/data/0000103379/000010337926000134/q22027earningspressrelease.htm?ref=bullished.co) that it reaffirmed full-year guidance. The filing says no shares were bought back in the six months, with $2.5 billion of authorization left. Capital priorities for the near-to-medium term are cutting leverage and reinvesting part of its savings.

The quarterly dividend of $0.09 a share is payable December 17 to holders of record on December 10.

### Sources

- [10-Q Filing — VF Corp. (VFC)](https://www.sec.gov/Archives/edgar/data/0000103379/000010337926000135/vfc-20260926.htm?ref=bullished.co) — SEC EDGAR
- [10-Q Filing — VF Corp. (VFC), Q1 FY2027 filed 2026-07-29 (comparison basis)](https://www.sec.gov/Archives/edgar/data/0000103379/000010337926000114/vfc-20260627.htm?ref=bullished.co) — SEC EDGAR
- [Earnings release (8-K Item 2.02, q22027earningspressrelease.htm) — VF Corp., filed 2026-10-28](https://www.sec.gov/Archives/edgar/data/0000103379/000010337926000134/q22027earningspressrelease.htm?ref=bullished.co) — SEC EDGAR
- [V.F. Corp. to Report Q2 Earnings: What Surprise Awaits Investors?](https://finance.yahoo.com/markets/stocks/articles/v-f-corp-report-q2-133900819.html?ref=bullished.co) — Yahoo Finance
- [VF Corp. (Vienna:VFC.VI) : Articles :: Law360](https://www.law360.com/companies/vf-corp?article%5Frelated%5Fcontent=1&ref=bullished.co) — law360.com
- [Brooks v. VF Corporation et al](https://www.law360.com/cases/6a51aaf3a51122f11fb8a7f0?ref=bullished.co) — law360.com
- [VF Corporation Exceeds Guidance in Second Quarter Fiscal 2027](https://www.businesswire.com/news/home/20261028707927/en/VF-Corporation-Exceeds-Guidance-in-Second-Quarter-Fiscal-2027?ref=bullished.co) — businesswire.com

### More on VF

- [VF Posts $364 Million Adjusted Operating Income Against A $315 Million Forecast, Holds Full-Year Outlook](https://www.bullished.co/vf-posts-364-million-adjusted-operating-income-against-a-315-million-forecast-holds-full-edc78c4a/)

[All VF (VFC) coverage →](https://www.bullished.co/tag/vfc/)