Weber, who declined to give sales projections for DKNYC, said that while the better line will be an important element in the company's future, it won't be the only engine to fuel the brand's growth.

"The future for us and for the luxury market is very much a combination of the U.S. and the rest of the world, and the rest of the world is not in the better business, it is about bridge and up," Weber said.

Karan, for her part, draws a strict line between DKNYC and DKNY.

"It caters to a different market," the designer said. "There may be an overlap, but interestingly, I find the Collection and the DKNY customer morphing into one sometimes. I don't think that's as much the case for DKNYC."