There's another similar example of Disney films that are just not break-even, not only Marshall-directed The Little Mermaid.
Tangled is a example of that. Directed by Nathan Greno and Byron Howard, this film had $260M budget (most expensive animated film at the time and currently tied with The Lion King remake in 2019), but it outgrossed them with $592M budget. However, more noticable difference from TLM live-action remake is Tangled did performed flop in domestic ($200.8M), but far outgrossed it overseas ($391.6M). This film eventually failed to break-even, but is more popular when it released to digital platforms and home media releases.