On the beach, Gigi and Gaston are trying to ride mules.
Madame Alvarez laughs from a balcony as she watches them.
Gaston tells Gigi to begin riding, but Gaston's mule refuses to move.
Behind her, Honoré again spots his lady target and is about to follow her inside when Madame Alvarez's laughter makes him turn around.
Honoré shrugs good-naturedly, finally resolving to go say hello to his old flame.
"Cherie," he says to her. "I must tell you, you've upset all my plans for the weekend." He asks her to sit down. She nods.
She tells him he was probably wasting his time anyway, and he's surprised she noticed. "Force of habit," she says, and explains that she's in Trouville with his nephew and her granddaughter.
Down on the beach, Gigi's still laughing as Gaston tries to get the other mule to move.
The older folks laugh at the hijinks and begin to reminisce.
While Honoré remembers the final days of their courtship spent on the Riviera in a blue villa, Madame Alvarez remembers only a pink villa belonging to a certain interloping soprano.
Together, the two break into song with "I Remember It Well," the joke being that each of them remember their time together very differently, each memory countered with another. It's a lovely scene. We see a different, sentimental side of Honoré.
Madame Alvarez flatters him with memories of young and handsome he was, "a prince of love in every way." That he remembers.