Let me say right off that this is my absolute favorite modern holiday outfit to date. I also got mine when it was first released so you had to buy the accessories (like the Star of David necklace) separately. I dunno if they changed that in later years or what but I see it sold on eBay with the accessories a lot, as if they were packaged together later on.
The sweater is my favorite part. I'm terrible with fabric names, but the catalogue description called it angora. It's the softest piece of doll clothing in my collection. As such you have to be really careful about the velcro on the back catching on it, but it's not that difficult. There are little rhinestones on the front that catch light nicely. I put it on dolls with blue jeans for a nice wintery effect.
The skirt is a gorgeous deep blue velour with an elastic waistband. I've never tried mixing it with other pieces, but as long as you paired it with something neutral I bet it would look great.
I'm not sure if these are the tights meant to go with the outfit - I have white tights all over the place due to having Samantha, so they could be hers. I'm not a fan of the white tights blending in with the white shoes, but the shoes mix and match really well with other outfits so I'm not complaining.
The headband could work just as well as a ponytail elastic if you wanted. It's got silver mixed in with it to match with the rhinestones.
Overall I'd definitely give this outfit an A. It's super soft and relatively easy to match with other bits of doll clothing.
And one last photo, with a better view of the headband: