First lady takes the fashion lead

WASHINGTON — First lady Michelle Obama celebrated her husband's inauguration Tuesday night wearing an ivory silk chiffon, one-shoulder gown covered in fluffy appliqués and beading.

Designed by Jason Wu, 26, the gathered-skirt gown was surprising for its reserve given Mrs. Obama's love of jewel tones and sleek silhouettes. Yet it was unconventional too, exposing her much-remarked-upon, well-toned arms.

The gown's slight train swirled pleasingly and her shoulder-sweeping earrings picked up the gown's sparkle as she and President Obama danced the evening's first dance at the Neighborhood Ball at Washington's Convention Center.

"First of all, how good-looking is my wife?" the president asked a cheering crowd.

The gown, embellished with organza and crystal rhinestones and silver thread embroidery, will be donated to the Smithsonian Institution, according to tradition, the first lady's spokeswoman said. Jill Biden, wife of Vice President Joseph Biden, wore a red strapless gown.

President Obama wore a white bow tie with a single-vent, notch-collar tuxedo and a U.S. flag pinned to its lapel.

Earlier, Michelle Obama won applause from style-watchers for the dress she wore for the swearing-in and parade: a sparkling lemongrass-color sheath with matching coat by Cuban-born American designer Isabel Toledo.

The outfit was made of Swiss wool lace, backed with netting for warmth, and lined in French silk. Obama also wore a cardigan over the sleeveless dress, as a buffer to the cold.

A bejeweled collar seemed to pin the cardigan together and dress up the look, sparkle the first lady matched with simple, diamond stud earrings.

The dress was applauded as a cheerful message of hope and a vote for the U.S. fashion industry. In some light, the ensemble took on a pale greenish cast, coordinating nicely with green gloves from J. Crew and Jimmy Choo green patent pumps.

The Obama daughters were style icons in their own right, with Malia, 10, in a double-breasted periwinkle-blue coat with a blue-ribbon bow at the waist, and Sasha, 7, in a pink coat with orange scarf and satin belt, a coral-color dress peeking out at the hem. Their coats were from Crewcuts by J. Crew.

The Taiwanese-born Wu, who has only shown a collection since 2006, and Toledo, who had a short stint as creative director at Anne Klein, are the kinds of designers Michelle Obama gravitates toward. By wearing clothes from up-and-comers such as Wu, Toledo, Narciso Rodriguez and Thakoon Panichgul, she is ushering in a new generation of talent.

Wu did not know Michelle Obama had selected the dress until she appeared in it, he said. "It's soft, feminine, but powerful; I wanted to convey all that in a dress," he said. "I wanted it to look like a sign of hope."

Toledo had much the same message with her day ensemble. She said she chose the lemongrass color for the optimism it represents. "I didn't want a traditional blue or red," she said. "That color has sunshine in it. I fell in love with it."

"She's off to an auspicious start," said Hamish Bowles, Vogue magazine's European editor-at-large who curated the Metropolitan Museum Costume Institute exhibit on Jackie Kennedy in 2001. "Mrs. Obama's choice today was appropriate, dignified and elegant, but it also had a considerable element of fashion panache," he added. "She's finding great American talent."

Material from the Los Angeles Times

is included in this report.