The stock hit its highest level in more than a year and if current gains hold, shares will have nearly doubled since late July after the Mattel executive was appointed to revive the company.
Dickson worked at Mattel for two decades and was responsible for reviving the Barbie brand, which re-entered the cultural zeitgeist this year following the success of the "Barbie" movie.
Gap's third-quarter earnings release Thursday showed significant inventory destocking, even as its holiday-season forecast disappointed.
Comparable store sales at its Old Navy brand sales rose 1% in the third quarter, their first increase in 10 quarters, after the brand languished last year due to out-of-sync inventory.
One analyst told Reuters "Gap has been in bad shape for so long that anybody who brings some sort of positive outlook to the company would be good at this point."
The company, like major retailers Walmart and Target, noted inventory levels have declined from last year's peak, which had been a significant overhang for several quarters.
However, Gap joined other retailers in sounding a cautious note on spending, heading into the all-important shopping season.
