Chanel's Karl Lagerfeld with Flavia De Oliveira and Julia Dunstall in Monte Carlo.

December 8, 2006 – Karl Lagerfeld was in his element today at Chanel's "Paris—Monte Carlo" pre-fall collection. First, there was the location—Monaco's magnificent nineteenth-century opera house, once the host of Diaghilev's Ballets Russes. Then, there was the audience, which included the couture-clad Princess Ernst of Hanover (better known as Caroline of Monaco), her pinup girl daughter Charlotte Casiraghi, socialite Tatiana Santo Domingo, and France's It girl actresses: Anna Mouglalis, Elodie Bouchez, and Amira Casar. And, of course, there was the collection, which Lagerfeld said was "all about layering in a weightless way." Not an easy thing to accomplish considering how elaborately embellished the clothes were, but he pulled it off.

Divided into three acts—day, cocktail, and evening—the presentation showcased the workmanship of the métiers d'art owned by Chanel since 2002. Lesage embroidery decorated tweed skirt suits and fitted leather jackets. Lemarié's camellias dangled from a tulle dress, while a satin bow cinched a showstopping cashmere dress flounced with frayed ruffles. And Desrue's intricate costume jewelry was everywhere—in the hair, at the wrist, piled at the neck.

In a nod to Coco Chanel's costumes for the ballet Le Train Bleu, the models wore fawn-like eye makeup and their hair pulled-back, the palette ranged from flesh tones to Klein blue to black, shoes came topped with satin bows, and there was endless tulle. It covered jeweled cuffs, diamanté buttons, even entire tweed jackets. "If you want to create allure, veil it," said Lagerfeld.

–Natasha Fraser-Cavassoni