Last Night's Look: Love it or Leave it?Check out the head-turning outfits Katie Holmes, Fergie and more stars were just spotted in! Then decide – fabulous or fashion fail?

OLIVIA PALERMO

Anyone else might look straight out of the North Pole in this red-and-white ensemble, but Olivia makes the BCBG Max Azria Henley-style gown look chic (obviously) by adding a masculine brown belt, ultra-sexy sandals and a simple clutch for the Convivio charity gala in Milan.