The Year in Hemlines & Bottom Lines By Robin Givhan Washington Post Staff Friday, December 22, 2000

The year 2000 was also one of those rare years in which clothes made news. Ladylike style, with its suits and matching accessories, wasn't new; a generation ago it was the status quo. But after so many seasons that glorified everything from disheveled denim and flannel to jeweled pasties, the return of elegance and refinement was a soothing balm.

Ladylike chic pushed the ethos of luxury, emphasizing real jewels, real fur and plenty of both. Interest in accessories soared as designers and consumers paid more attention to their shoes, handbags, belts and scarves. And luxury made, as yet, unprofitable forays into cyberspace with sites such as Eluxury and Luxlook.

The rise of the lady also saw the fall of the rough-and-tumble diva. Everyone wanted diamonds, platinum and designer logos. The mainstream no longer wanted to dress like rock stars and struggling rappers.

This year, fashion grew up. The question that remains to be answered is whether with maturity came wisdom. These were fashion's most captivating lessons in 2000:

* After an unsuccessful attempt to sell the company he founded with childhood friend Barry Schwartz, Calvin Klein filed a lawsuit against license holder Warnaco and its CEO, Linda Wachner. In essence, the lawsuit highlights the advantages and disadvantages of the common practice of designers licensing their names. Is licensing a smart way to expand a company or a surefire way to dilute a prestigious brand?

* The battle for dominance in the luxury business raged on between LVMH Moet Hennessy Louis Vuitton and Gucci Group.Alexander McQueen, fashion's most volatile designer, switched sides in the middle of the war when the head designer for LVMH's Givenchy sold a controlling interest in his formerly independent signature business to Gucci.

* The suit made a triumphant return to the runway, striking a blow against business casual. It also marked the comeback of the well-groomed and perfectly accessorized lady. The question, however, is whether a lady can survive in a culture intent on stamping out gentility.

* All eyes were on Yves Saint Laurent as designer Tom Ford took over duties as creative director of the much-lauded house. His debut collection was warmly received, but the label is a long way from white-hot popularity and profitability. Ford at YSL is fashion's most promising and most watched creative gamble.

* Traditional hip-hop style is falling out of favor with mass market America. No one felt that disenchantment more than Tommy Hilfiger. The label that made its millions from baggy jeans and oversize rugby shirts lost buzz, dollars and the confidence of Wall Street. In a major overhaul the company went back to its country club roots. Once again, the clothes actually fit.

* Not since a gust of wind caused Marilyn Monroe's white party dress to take flight around her thighs have the laws of physics and a frock caused such a stir. Jennifer Lopez defied gravity and tempted fate in a green chiffon scarf-inspired evening gown from Versace. The only thing separating the plunging neckline from the soaring split was a well-placed brooch. Here was proof that a dress could still make news.

* The election brought us earth tones, cowboy hats, black pantsuits and pancake makeup. Fashion was Decision 2000's shadow issue.

* Donna Karan sold her name and she's in the process of selling her company to LVMH. If everything goes as planned, LVMH will have an enormous stake in American fashion, Karan will be about a half billion dollars richer, and shareholders may have reason to, at long last, be optimistic. But mostly we'll be left to wonder how Karan's philosophy of problem- solving garments, her executive dressing concept of seven easy pieces, and the legacy of her mentor Anne Klein all fizzled away.