How 'Lilo & Stitch' Became One of Hollywood’s Most Unexpected Box Office Hits

Call it Stitch’s long-overdue moment in the spotlight.

For over two decades, the mischievous blue alien known as Stitch was somewhat sidelined within Disney’s vast character lineup. The 2002 animated film 'Lilo & Stitch' was produced quietly, partly because Stitch’s unconventional design and edgy personality didn’t fit the traditional Disney mold. Promotional materials even depicted classic Disney characters like Pinocchio, Jasmine, and Belle recoiling in shock at Stitch’s wild appearance.

While the original film saw moderate box office success, Stitch’s journey continued with a few direct-to-video sequels and a 2000s television series. A modest Disney World attraction opened in 2004 but closed in 2018, leaving Stitch to remain a niche consumer product.

Fast forward, and Stitch has become one of the most unexpected blockbuster hits in recent years—not only for Disney but across Hollywood.

The $100 million live-action remake of 'Lilo & Stitch,' initially intended for a Disney+ debut, has earned $610 million globally within just 10 days of theatrical release. Box office analysts estimate that, by the end of its run, ticket sales will approach $950 million. If the film performs well in Japan, where it premieres this Friday, it could even surpass the $1 billion mark.

Given Disney’s revenue-sharing with theaters, the studio stands to gain $300 million or more solely from box office receipts.

This remarkable financial turnaround underscores Disney’s strategic pivot in 2023 after Robert A. Iger’s return as CEO. The company scaled back original streaming projects and refocused on theatrical releases. In November, 'Moana 2,' originally planned as a Disney+ television program, grossed $1.1 billion in cinemas. 'Lilo & Stitch' followed a similar path.

“Releasing films in theaters to build a global footprint enhances everything: streaming, merchandise, and theme parks,” said Alan Bergman, co-chair of Disney Entertainment. “It’s much harder to achieve that impact when a film launches directly on a streaming service.”

Nine months before its release, when Disney scheduled 'Lilo & Stitch' for the Memorial Day weekend, Bergman expressed cautious optimism. Despite no new content at the time, Disney’s consumer products division had boosted Stitch merchandise sales to $2.6 billion in 2024, up from $200 million in 2019, fueled by nostalgia among young adults.

The film’s cheerful tone offered a fresh alternative to the intense action of Tom Cruise’s 'Mission: Impossible – Dead Reckoning,' also released that weekend. In a surprising turn, 'Lilo & Stitch' outperformed Cruise’s blockbuster, earning $183 million domestically during the holiday weekend compared to 'Mission: Impossible’s' $79 million.

“Disney executed this perfectly,” said Kevin Goetz, CEO of film research firm Screen Engine/ASI. “They made a film people love, priced it right, picked an ideal release date, and backed it with strong marketing and social media campaigns.”

Disney recently celebrated the film’s success with a champagne toast at its Burbank headquarters, where Bergman’s office was adorned with Stitch-themed balloons and David Greenbaum, president of Disney Live Action, wore a blue Hawaiian lei.

The film’s triumph also challenges recent skepticism about theatrical releases. Netflix’s chief Ted Sarandos had labeled cinema premieres “outdated” amid a struggling box office landscape, citing flops like Disney’s costly 'Snow White.' Sarandos suggested consumers preferred watching films at home.

Across Hollywood, executives are now recalculating the profitability of 'Lilo & Stitch.' In the past 15 years, only three live-action films with production budgets of $100 million or less—'Oppenheimer,' 'Joker,' and 'Jumanji: Welcome to the Jungle'—have crossed the $950 million box office threshold.

However, those films involved profit-sharing arrangements with filmmakers or financial partners. In contrast, Disney retains full box office earnings from 'Lilo & Stitch,' paying no additional premiums to directors, cast, or financiers.

Beyond ticket sales, analysts project tens of millions in revenue from premium video-on-demand rentals and digital purchases. While difficult to quantify, the film is also expected to enhance Disney+ subscriptions and advertising revenue.

Merchandise sales tied to the film could add approximately $400 million in annual profits.

And sequels are inevitable.

“There’s definitely room to tell more stories,” Bergman noted.

Development on the new 'Lilo & Stitch' began in 2018 when a group of producers pitched the idea to Disney, which at that time was focused on adapting animated classics like 'The Little Mermaid' and 'Aladdin' into live-action films.

“The response was, ‘Oh yes, Stitch, no one’s asked about this title before,’” said Jonathan Eirich, one of the producers. (Another producer, Dan Lin, became Netflix’s head of films in April 2024.)

The project faced challenges, including production delays caused by the 2023 writers’ and actors’ strikes. It wasn’t until February this year that the film began to look like a potential box office hit.

A turning point came with a Super Bowl marketing stunt where Stitch appeared to invade the field after the coin toss, evading stadium staff. Disney continued promoting Stitch’s playful antics in the following months, featuring him popping out of popcorn buckets and driving a pink car with the license plate “2 FAST” in shopping malls.

When opening day attendance exceeded expectations, Disney raised its internal weekend box office forecasts but requested the studio keep the updated estimates confidential to avoid misleading headlines.

“Don’t ruin it! Don’t leak the higher estimates,” Eirich said he told Disney. “I didn’t want headlines saying we had underestimated ourselves.”

Fortunately, there was no need to worry.