HanesBrands announced on Thursday fourth-quarter sales that surpassed expectations, coinciding with the news that its CEO, Steve Bratspies is stepping down from his post by year-end.

The American apparel firm said sales from continuing operations rose 4.5 percent to $888 million, with U.S. sales increasing 3 percent over driven primarily by innerwear innovation. Internationally, quarterly sales gained 2 percent, as sales grew in Australia, the Americas, and Asia.

However, net losses for the quarter ending December 28 reached $12.9 million, including a $58.5 million loss from discontinued operations, thanks to the sale of the company’s struggling Champion which wrapped up in September.

​​“We delivered a strong quarter and full-year with results across all key metrics exceeding our expectations as the benefits of our transformation strategy are clearly working,” said Bratspies.

“We enter 2025 as a new company. We are a more simplified, focused business with a powerful asset base and significant competitive advantages. We believe we are well positioned to build on fourth quarter’s momentum and deliver positive sales growth, additional margin expansion, strong cash generation and continued debt reduction, providing us multiple levers to create additional shareholder value in 2025 and beyond.”

In a separate release, HanesBrands announced that Steve Bratspies will depart from the role of chief Executive officer of the company at the end of 2025, or upon the appointment of his successor.

Bratspies will step down from the North Carolina-based firm’s board of directors inline with the end of his tenure as CEO. He will stay on in an advisory role once a new CEO is named to support a smooth transition, according to a press release.

In light of the upcoming departure, HanesBrands said it has enlisted executive search firm Spencer Stuart to help with the search for the company’s next CEO.

​“Having reached a positive and important inflection point in executing our strategy and looking ahead to the next leg of the company’s journey, the board, in concurrence with Steve, has decided that now is the right time to initiate a search for our next CEO. We are actively searching for the next leader who will continue building on our momentum for the next chapter of the company’s growth. We will provide updates as appropriate,” said Bill Simon, chairman of the HanesBrands board.

“On behalf of the entire board, we deeply appreciate the transformative leadership Steve has demonstrated throughout his tenure as CEO to make HanesBrands a new and better company. Steve led HanesBrands through a turbulent period in our industry, overhauling the company’s operating model, completing the sale of the Champion business and positioning HanesBrands as a global powerhouse in basics and innerwear. Under Steve’s leadership, the company has narrowed its focus and is now on track to deliver even stronger performance and increased shareholder returns in the coming years.”

HanesBrands extensive portfolio of apparel and innerwear includes Hanes, Playtex, Bali, L’eggs, Just My Size, Barely There, Wonderbra, Maidenform, Berlei, and Bonds.