Thorne and Darla watch the show: click here to see it yourself.

The fashion showdown begins. As Spectra brings out its first gown, a short, gold outfit, the crowd applauds. Backstage, Thorne and Darla are pleased with the response. In the audience, Jarrett comments into his tape recorder that this gown is an inspired example of "couture elegance." He thinks this second Forrester/Spectra showdown could change the balance of power in L.A. fashion by determining which fashion house Thorne will call home. He bets that Eric is banking on the fact that he's never lost here, on his own runway, to win a personal victory today and bring his son back to Forrester.

Eric and Brooke try to gauge the crowd reaction to Forrester.

When Forrester's first design, a gold and black outfit, hits the runway, the crowd cheers. Jarrett says it looks like Eric and his new mother/daughter design team are back in the game following their slump after Ridge's departure. Backstage, Brooke tells Eric that the crowd's reaction was fantastic. So was their reaction to Spectra, Eric reminds her. He goes behind the curtain, where Caitlin is helping a model get ready, and nearly pushes the young designer out of the way to help the model himself. Brooke tells him to relax, since he, Samantha and Caitlin have made many improvements since the preview. Eric says he can't relax; this is the biggest battle of his career and the prize is his son's return, so he can't rest until he's won.

Sally tells Darla about their personal cheering section.

The crowd applauds again as Spectra brings out the next two gowns with beaded bodices with flowing skirts that Jarrett describes as "knockout must-haves in seafoam and turquoise." As Clarke helps a model, Darla and Sally revel in the applause they're getting. Sally says they're a remarkably enthusiastic group. Especially those 4 girls in the back, Darla points out, who don't look like members of the fashion press. Sally asks if Darla is suggesting that she smuggled some ringers into the audience to juice things up. Darla asks who they are. An adorably peppy group of well behaved pom-pom girls, Sally boasts. Darla reminds Sally that this is a high class event, but Sally assures her that everything is under control. She tells Darla to focus on their winning this thing so Thorne can stay at Spectra, where he belongs.

Jarrett reports on the action.

Jarrett spots the cheerleaders in back on comments that Sally hasn't outgrown her taste for trash and flash. Fortunately, he says, he and his fellow reporters are above such cheap theatrics and will make their decisions based on the designs on the runway. And speaking of the runway, he adds, here come the next offerings from Forrester. The crowd reaction to a pair of blue and pink gowns is subdued; Jarrett says these gowns make a statement, but they're not saying "wear me to the oscars." Caitlin and Sam are worried by the subdued response. Brooke turns to Eric, who says he sees it: they've hit the wall. He tells Sam and Caitlin to change the order and bring out the fur stole for the wedding gown. Brooke reminds Eric that he said last night he wouldn't do that; Eric says he changed his mind as Sam and Caitlin go to make the change. Brooke asks if it's wise to be making changes during the show. Eric barks at her that this isn't a show: it's a fight for his family that he intends to win!

The crowd response perks out as Spectra brings out a black beaded gown with a halter style top. Sally, Thorne and Darla are all pleased with the response to their "fashion miracles." Thorne remains guarded, however, since they still have the showstoppers left. In the audience, Jarrett agrees: although he was impressed by the last Spectra gown and underwhelmed by Forrester's last offerings, he thinks it's still anyone's game going into the showstoppers.

The Forrester team sees that their showstopper is a hit.

Jarrett awaits Eric's trademark wedding gown showstopper, one that has few rivals in the fashion world. He wants to see if today's entry can bring on a reunion between Eric and his worthy son and competitor. When the gown comes out, the crowd is extremely enthusiastic. Bravo, Forrester, Jarrett declares about the splendidly elegant and timeless vision in white on the runway. Backstage, Brooke points out the reaction to Eric and says she was right to tell him not to panic. Sam and Caitlin tell Eric that they might really win this one. Eric agrees that they just might, but either way, he wants to thank Sam and Caitlin for their wonderful work.

Clarke tells Thorne about the press reaction to Forrester.

On the Spectra side, Clarke hears the reaction to the Forrester showstopper and asks Thorne if he heard that. Thorne says he did, but he still feels really good about their own showstopper. When their showstopper, a short white dress with a full length fur trimmed coat and white fur trimmed boots, hits the runway, the crowd gasps. Sally and Darla wonder if that means they love it or hate it. As if in response, the crowd gives the Spectra gown a rousing standing ovation! Sally's cheerleaders hold up signs that say Spectra, but it's clear the crowd is on their side. Thorne's pleased until he sees a dejected look on Eric's face. On the Forrester side, Eric tells Brooke that they have their answer now. Brooke tells him she's so sorry. On the Spectra side, however, Sally and her crew celebrate beating Forrester on their own runway! They send Thorne out to the stage to receive some well-deserved applause. Thorne goes out there and thanks everyone: he thinks today proved that Spectra is playing with the big boys now. And beating the pantyhose off them, Jarrett shouts! Thorne laughs and brings out the woman whose faith in him made this possible, Sally. The crowd applauds and cheers some more.

Hector comforts a dejected Samantha.

Backstage, Hector finds a dejected Sam, who feels like she let Eric down. Even if they didn't win, Hector tells his fiancee, she still designed some beautiful dresses. He compares it to his own job as a fireman, where sometimes, even the best men giving their all can't put out a fire. He then gives her a hug.

Thomas tries to console Caitlin.

Thomas finds an equally dejected Caitlin, who can't believe this happened. She laments that she put her heart into those designs. Thomas reminds her that the fashion business can be unpredictable, something he learned growing up in the fashion world. She hopes Eric hasn't lost faith in her. Thomas is sure his grandpa still believes in her. He tells her that discovering her for Forrester was the smartest move Eric ever made. He starts to move close to her: Caitlin pulls back at first, but then moves towards him and they kiss.