They make woollen garments - or new net skirt! (8)
'they make woollen garments' is the definition.
The definition suggests an adverb but the answer is not.
'new net skirt' is the wordplay.
'new' indicates anagramming the letters.
'netskirt' with letters rearranged gives 'KNITTERS'.
'or' acts as a link.
Can you help me to learn more?
(Another definition for knitters that I've seen is "Trinkets for wool workers".)