Applying the proper settings and using the correct backings or stabilizers are extremely important when you are creating an embroidery design to be sewn onto soft, stretchy fabric such as wicking shirts.

The main issue is trying to keep the embroidery from puckering and pulling.   Soft, stretchy fabric should be treated like a knitted fabric, using a small ballpoint needle.  Never use more than a 70/10 needle for this application.  If the lettering is tiny, you should use a 65/10 ballpoint needle and a 60 weight thread.

Add Embroidery Underlay And Pull Comp Settings

Your underlay settings are going to depend on the size of the lettering or the segments within the design.  If you are creating a design with lettering that is over 1.5 millimeters in column width, you  should use an edge run or contour stitch along with a zig zag stitch for your underlay.  The pull comp will vary, depending on how stretchy or fine the fabric actually is.  This is something that you must experiment with.

If the letter is less than 1.5 millimeters in width, it is best to use one pass of a center run or perpendicular underlay.   Sometimes the zig zag underlay is also necessary and sometimes not. Again, it all depends on the fabric itself.  Trial and error is the only way to find this our for sure.

Keep Embroidery Density Light

Keeping your embroidery stitch density on the light side is also very important.  It is actually better to use more underlay and less top stitching than little underlay and heavy density.  You do not want to take a chance on creating any holes in this fabric.  It runs and snags very easily!

Use Correct Embroidery Backings Or Stabilizers

The proper backings technique that works ideally every time is 2 layers of No Show Cutaway Backing along with 1 layer of a Crisp Medium Weight Tearaway.  The tearaway is placed next to the skin so that it can be ripped away.  This layer of tearaway helps to hold the lettering and keep it crisp and clean while the no show backing or stabilizer will keep it soft and pliable. Also use a topping for soft, stretchy fabric.  Not only does it help to keep the thread on top of the garment, it also acts as a lubricant as you are sewing through this troublesome fabric.  Use these settings and backing techniques and you should have great success!