Kate Hudson and Lance Armstrong only had eyes for each other at Dolce & Gabbana’s annual party in Cannes Friday.  The pair kissed and danced to old Madonna songs and other ’80s favorites. "They were beaming at each other," a source tells PEOPLE. "So cute."

In a VIP room so packed that Petra Nemcova couldn’t get in, Hudson and Armstrong chatted briefly with Cannes juror Natalie Portman, who was holding hands with her folk-rocker beau Devendra Banhart. (Unlike all the other female celebrity guests, Portman wore Chanel because she decided to come to the party at the last minute.)

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