Damages goods, we hear (5)
I believe the answer is:
wears
'damages' is the definition.
'goods we hear' is the wordplay.
'goods' becomes 'wares' (wares is a kind of goods).
'we hear' shows a homophone (sound like).
'wares' sounds like 'WEARS'.
(Other definitions for wears that I've seen before include "Dons (clothes)" , "Dresses in" , "Swear (anag.)" , "Sports; erodes" .)