I work nearby the flagship LV shop in Paris, and I am pretty surprised by this kind of rumours. In fact, there is a constant line to enter the shop, like an Apple store if they were releasing a new iPhone every day of the year. Does Apple burn unsold iPhones? No because there are none.
For the record, 2 years ago, Louis Vuitton had to close all shops 1 hour early during fall season, in order to avoid stock shortage during Christmas holidays, despite raising price (yes, raising already over-priced items), according to _Le Figaro_, a credible French newspaper.
I honestly don't see why LV could not sell all their production.