For his part, Puig said he relishes the chance to work hands-on in luxury goods, in close collaboration with Grauso. "We are 90 percent a fragrance group and we can move to be a more balanced luxury goods group," he said.

Thanks to the buzz around Theyskens, and ethereal dresses inspired by the L'Air du Temps bottle, Ricci's fragrance business "is taking off again," Puig added.

Puig Beauty and Fashion Group includes — on the prestige fragrance side — brands such as Carolina Herrera Perfumes, Paco Rabanne, Groupe Nina Ricci, Comme des Garçons Parfums and Prada. On the mass market front there are Myrurgia, Perfumeria Gal, Antonio Puig, Antonio Banderas, Barbie and Adolfo Dominguez. Puig's beauty business generated sales of 929 million euros, or $1.17 billion at average exchange, in 2006. That represented a 4 percent rise on 2005.

Meanwhile, Manuel Puig's immediate priority is Ricci's accessories push and retail expansion.

Freestanding Ricci stores are slated to open this year in Tokyo, Moscow and Dubai, and the Paris flagship on Avenue Montaigne is set for a major renovation, reopening with a new Theyskens concept in July. He noted Ricci would look at opening some U.S. locations in 2009.