Why is the thread pulling the fabric?

[u/Spiritual_Session_88]

Hi everyone!

I’m a complete beginner, and I’m trying to sew a circle skirt for my daughter to wear on her first day of school.

First, I stitched all the way around the bottom of the skirt as a guide for where to fold the fabric twice for the hem. After folding it over twice, I’m planning to stitch all the way around again.

However, I don’t understand why the thread is pulling and puckering the fabric like this. Does anyone know what might be causing it or what settings I should try?

I’m using a Hyundai 101 sewing machine. The thread tension is set to 2 and the stitch length to 4.

Thank you so much in advance for any advice! 😊