Sheet material is taken from a supply, moved along its length to a cutting station, the sheet material is cut into segments, and the cut segments are moved parallel to their cut edges, the cut edges are hemmed, and the segments are folded. At the cutting station the leading portion of the sheet material is gripped and pulled from the entrance to the cutting station to the other side thereof, a slack bar is moved downwardly into the segment of sheet material in the cutting station to form slack in the segment, and the segment in the cutting station is clamped against parallel conveyor tapes. A cutting disc is drawn across the sheet material at the entrance to the cutting station, and the parallel conveyor tapes move the sheet parallel to its cut edges to a hemming station where the edges are folded and hemmed. The hems of the side edges are expanded after being mechanically formed and prior to being sewn. The leading and trailing edges of the folded portions of the hems are aligned with the leading and trailing edges of the unfolded portion of the hem as the segment approaches the sewing machine.