The Gathered Stitch is a segment of ruched stitches worked in stockinette stitch against segments of garter stitches. The gathered or ruched effect is created by doubling the quantity of stitches at the start of the stockinette stitch section and then reducing the stitches in half before working the segment of garter stitch.
The fabric tends to become a bit bulky where the stitches are doubled so swatching is a good idea to ensure that desired effect is achieved. Perhaps go up a needle size or two if the stockinette stitch is too bulky.
Gathered Stitch
(Any number of stitches)
Row 1 (RS) Knit
Row 2 to 6 Knit
Row 7 *Make 1 in each stitch: repeat from * to end
Rows 8, 10, 12 Purl
Rows 9 & 11 Knit
Row 13 *K2tog; repeat from * to end
Repeat row 2 - 13 to form the Gathered Stitch
Abbreviations
K2tog Knit 2 stitches together
M1 Make one (knit in front and back of stitch)
RS Right side