Yes they do, but so tiny there would not be much opportunity to sew a design on them.
The guy on roller skates in Paris had probably cut a bit too high as suggested
(but his fashion statement no doubt)
http://shop.pacsun.com/home.jsp
Interesting to see here that men's shorts appear long but look at women's and you find the cut-offs (and there is the Roxy brand, which brings us full circle to the thread about bikini bottoms)