Back at the fashion institute, Tim actually explains the so-called Michael Kors challenge. The core of the challenge is "inspiration" and the designers will each choose one of Michael's favorite vacation spots and base their design on what they think people wear there. Carol Hannah is nervous about today's challenge. You can tell because she has quadrupled her normally-considerable mascara and now she is so black around the eyes that when she bends over the photos of the locales to choose her inspiration, she looks like she might tip forward. She grabs Palm Beach, struggles to right herself, and then explains that although she has never been to Palm Beach, she is looking forward to the challenge. Nicolas is next and despite the obvious hometown advantage, he passes on New York City, because it is too easy and instead opts to use Greece as his inspiration. Althea quickly grabs St. Tropez; Gordana goes for New York. For some reason the photo the producers have chosen to embody New York City and inspire the designer is a really obtusely cropped shot of Central Park from high up in some building on what looks like 53rd street. I only recognized the view because my old office building is in the picture. Also, Chanel's U.S. headquarters are housed in the building. Maybe Michael was using a telephoto lens to try and catch a glimpse of Chanel's designs. Irina opts for Aspen because she is all about fur and outerwear. Maybe a PETA protester will douse her in red paint Carrie-style, which would certainly add some drama to the runway. Christopher picks Santa Fe, leaving Logan with Hollywood. Logan does a sarcastic victory fist pump that causes even Tim to crack a smile and makes me heart Logan even more even if he is just an average designer with kind of greasy hair. Tim sums up the bad news: First, the challenge is stupid. Second, they only have $150 at Mood. Third, it's a one-day challenge.

Everyone settles down to sketch and pretend they have any freakin' idea what fashion-forward people in Santa Fe or Greece wear. Carol Hannah thinks of Palm Beach as a town that is simultaneously relaxed and put together. I can't remember if Palm Beach is in Florida or California but I am sure she is right, either way. Wait, Palm Springs is in California (I remember this wholly because of the reality television based at the Parker hotel in Palm Springs), so Palm Beach must be in Florida. Okay then. Althea knows that there are yachts in St. Tropez (she saw them in the picture she was given) but she also knows it is an old fishing town and she wants to reflect both of those in her designs. So...fish nets and a picture of Paris Hilton and the Shah of Dubai? Gordana is designing for the sophisticated independent woman who lives on Park Avenue in New York City. Does the Macy's accessory wall have either a tiny dog or a doorman, so she can really exemplify the style? Tim ushers everyone off to Mood with a rousing "C'mon it will be fun!" Nicolas mutters something about denim, which just sounds all sorts of wrong, but I've never been to Greece either, so what do I know? Logan is looking for anything that jumps out at him, which I can only assume will be a swarm of teenage girls. Gordana spends all her money on jewels while Irina complains that she can't put together a winter look on that budget. Glad to see she is getting in the snooty Aspen mindset!