Why did A Damsel in Distress receive praise despite its weak box-office performance?

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Although A Damsel in Distress (1937) struggled at the box office, it earned critical praise for specific elements of its production and performances. The film was particularly noted for the "Fun House" musical number, which won Hermes Pan an Academy Award for best dance direction. Additionally, the film was lauded for the comedic contributions of George Burns and Gracie Allen.1