MADONNA'S MOMENT: Steven Klein has shot the ad campaign for Madonna's second collection with Sweden's fast-fashion giant Hennes & Mauritz. Industry sources say the mood is ultraglamorous and, surprise, very sexy. The ads feature curve-hugging silhouettes, military details and satin cummerbunds, and the pieces reflect Madonna's own wardrobe, which is packed with tight skirts, high heels and sunglasses. As reported, M by Madonna is slated to hit stores this March. An H&M spokeswoman declined to comment.

DONNA, PARTY ANIMAL: Some people think parties are hard work. Donna Karan is not one of them. "Hell, no," she said Tuesday night at her holiday party at her Stephen Weiss Studios in New York. "This is fun, bringing people together! It's the holidays." In fact, with barely enough time to sweep the floors and throw out the trash, she'd hosted two parties in 24 hours, and a number of the guests managed to show up both Monday and Tuesday.

"I want to live here," joked Sophie Dahl, who was in attendance Monday night for a fund-raiser she hosted with In Style on behalf of Ross Bleckner's AIDS charity, ACRIA, and then came again on Tuesday. "It's so cozy."

Carolina Herrera won't be bunking down, however. "The music's a little loud," she said.

Others in attendance for the festivities included Calvin Klein, Brice and Helen Marden, Sandy Gallin and Bernadette Peters. Whose dress was she wearing? "Donna Karan!" she said. Naturally.

MARC MANIA: Note to those who are still wondering about the line of people spilling onto Prince Street on Friday: They were probably hoping to get their hands on a Marc Jacobs handbag for $200. In what's becoming an annual tradition, Jacobs opened the doors of his boutique on Mercer Street that day for the final 70 percent markdown on fall merchandise, and a $200 sale of three handbag styles from past seasons that were gathered from Marc Jacobs' boutiques around the country. "It was insane," said Robert Duffy, president of the company. "They just started lining up in the morning at 6 o'clock, and there were people on folding chairs, like a Yankees game."

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