It didn't do too hot considering it was a launch exclusive, but still not a flop.

If an ARMS 2 is announced then we'll know ;)

It wasn't a launch exclusive. 

Being a weird fighting game, I think it did good, and the developers and executives certainly had to be aware of this since the beginning.

LEGS

Financially? No. It almost certainly made money.

Was it something of a disappointment to Nintendo? Possibly. It will be interesting to see if they continue the series. People often fail to realize that publishers and developers don't just ask, "will it make money," they also ask, "can I make more money doing something else?" It might be that projections show Mario Curling 13 would bring in a lot more revenue.

On the other hand, bringing diversity to the Nintendo lineup might be almost as important a goal as direct profit. It's something Nintendo has lacked in the past and I think their newest IP definitely show that they want to address that. I also get the impression they covet the multiplayer model that keeps people invested in their platform for long periods. It's a good strategy when you have less overall material.

It's quite possible that Nintendo is content with ARMS and what it brings to their portfolio.

I tend to use this image when trying to break things down, but given we are dealing with a Nintendo in house group every sold copy is about 39 dollars minimum. 

That's a minimum earnings of 65,130,000. 

I feel there was profit being made with it, though it is possible they thought it would be Splatoon 2.0. Hopefully Nintendo doesn't have the Jimquisiton penned 'All the Money or Not worth it' mentality. 

(Which I feel there is decent evidence to suggest they don't have it. They probably get the importance of modest successes more than E.A or Viacom, who apparently cancelled and uncancelled Fairy Odd Parents at least 4 times for 'making money but not Spongebob money'. Note this also took place before Seasonal Rot took on too heavily).

I would imagine an absolute success. Doesnt look a particully expensive game and is well on its way to being a multi million seller.

If at todays industrie any fullprice million-seller game is a flop financially, the budget planning was seriously fucked up. Or absent.

A fighting game should be even cheaper than some other genres. You need to design way less world for a fighting game. Character amnimation takes some more work, but it doesn't outweigh the factor, that a complete world many other games offer is replaced by a few stages.

So no, financial success. Budget planning was probably for 300-500K sold at full price.

Every Nintendo game that has sold about 1 million times is a financial success for Nintendo

Well, it sold less than Resident Evil 7, and that was a complete bomb.