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Edge fracture is a common problem when forming advanced high strength steels (AHSS). A particular case of edge fracture occurs during a collar forming/hole extrusion process, which is widely used in the sheet metal forming industry. This study attempts to relate the edge stretchability in collar forming to the strain hardening along the pierced edge; thus, Finite Element (FE) simulations can be used to reduce the number of experiments required to improve cutting settings for a given material and thickness. Using a complex-phase steel, CP-W 800 with thickness of 4.0 mm, a single-stage piercing operation is compared with a two-stage piercing operation, so called shaving, in terms of strains along the pierced edge, calculated by FE simulation. Results indicated that strains were reduced along the pierced edge by shaving.