Don't get me wrong–The Lagerfeld Must Still Be Stopped, but there's one point of redemption on this dress. Can you guess what it is?
Yes! The midriff band! (Okay, and possibly the round collar). Take away the godawful puffed sleeves and what can only be described as a shoulder peplum; remove (with a plastic fast-food knife if there's nothing else to hand) the apron detail and the ruffles on the skirt, and concentrate seeing a dress with that ruched midriff band and deep front slash. You could even leave it in that fabric, it's not at all bad, although I don't know if I would pair it with those sandals (and I even have a pair much like those!).
In my fantasy/theory, some design assistant at Fendi put together the dress I describe above, with simple cap sleeves, maybe, and the Lagerfeld swooped in, clanking (as he does, with all that extraneous metal, god forbid you're ever behind him in an airport security line) and says "Not enough random fug! My god, have I taught you all NOTHING!" and then he proceeds to add crap until the good dress underneath is completely obscured.
Of course, this is all pure speculation mixed with not enough sleep (and truly terrible dreams) on my part. Perhaps there was even more fug on this dress (although where you could put it, I have no idea) and the Lagerfeld, he used his weird sharp rings to pare it away. But I doubt it.