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One way is to do it exactly the same as you did here, the problem is the spacing is usually quite bigger than necessary. To adjust the spacing between the letters, go to Tools, Paragraph Formatting and adjust Paragraph/Line spacing. After adjusting it's a good idea to center align your text too, otherwise it will look awkward.
 

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Call me OCD, but for sleeves I like my letters to be all the same size (width and height).

It looks pretty like that.

I use the graph paper tool (keyboard shortcut "D") to draw a graph of 1 column and as many rows as the max number of letters I plan to use. Then break apart.

Next, I type of my word, break apart, size all the letters to the same width and height numerically using the toolbar at the top of the app (make sure you've "unlocked" the dimensions or it will keep trying to scale proportionally).

After that, I put one letter per graph box, and align each to the to the center of it's box (keyboard shortcut "C" after you have your box and letter selected).

Voila, perfectly awesome looking sleeve text. Font-wise, I like Rockwell Extra Bold for athletic sleeves.

I know, it SOUNDS like a lot of steps, but it's really not bad once you've done it once through, and the results are awesome.
 

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You dont have to go to the paragraph formatting. You can simply select the shape tool and adjust the kerning and line spacing. It also allows you to move individual letters as you wish. You can also select the center alignment just like you would to center align words.
 

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You dont have to go to the paragraph formatting. You can simply select the shape tool and adjust the kerning and line spacing. It also allows you to move individual letters as you wish. You can also select the center alignment just like you would to center align words.
Found out where it was at with the little drag icons. Never noticed that before so thanks for the tip!
 
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