I’m knitting this as a long-sleeved sweater with the gathers just at the bottom of the sleeves. Gathers at the top of the sweater with the stockinette body.

This seems to be one of the few kids’ sweaters that has the sizing right, too! Most of them are wildly huge, but for this one -- my daughter is a size 8 and the measurements on the size 8 sweater here are just right.