Ungaro CEO Mounir Moufarriage said that Lindsay Lohan has not been dropped by the label.
Lohan's recent debut collection for the French fashion house was critically panned, but Moufarriage has denied rumours that the actress has been axed, insisting she is still very involved.
He told WWD: "As we speak, she is in New York in shoots with Ungaro. The decision to appoint her was controversial, but then fashion is controversial anyway, and you need some novelties and you need to test some new ideas."
He went on to say that her association with the label has helped to increase sales - even before her collection has become available in stores.
"There are some girls out there that whenever they move, whatever they wear, they attract attention, even if they make mistakes. It's all publicity. We've got a celebrity and it's a new concept, which we're going ahead with.
"Ungaro, let's recognise it, was a dormant brand, and now everybody's talking about it today, so the level of awareness has improved greatly."
